Download our latest Annual Report - Bakkavor
Download our latest Annual Report - Bakkavor
Download our latest Annual Report - Bakkavor
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BAKKAVOR ANNUAL REPORT AND ACCOUNTS 2012<br />
financial review<br />
WE DELIVERED A STRONG PERFORMANCE IN 2012 WITH<br />
LIKE-FOR-LIKE SALES GROWTH OF 5.4%.<br />
This was achieved through new business wins as<br />
well as supporting <strong>our</strong> customers’ pricing initiatives<br />
and promotional campaigns.<br />
Peter Gates<br />
Chief Financial Officer<br />
financial highlights<br />
5.4%<br />
like-for-like<br />
sales growth<br />
GROUP REVENUES<br />
We continued to show good sales growth for the year despite tough<br />
trading conditions, with like-for-like sales growth of 5.4%. This increase<br />
was almost entirely volume driven through successful participation<br />
in promotional activities, new product launches and new business<br />
development. Our pricing, which excludes the one-off costs of<br />
promotion activity, remained relatively flat as raw material inflation<br />
stabilised during Fiscal Year 2012 and price increases negotiated to<br />
offset the effect of the inflation during 2011 remained in place. For<br />
further analysis of the Group’s revenue performance refer to <strong>our</strong><br />
Business Review on page 23.<br />
GROSS PROFIT<br />
ADJUSTED EBITDA MARGIN (%)<br />
6.4<br />
6.8%<br />
0.4%<br />
11 12<br />
FREE CASH FLOW (£m)<br />
20.6<br />
£23.5m<br />
14%<br />
11 12<br />
The gross profit margin for 2012 was 26.9%, representing a year-on-year<br />
increase of 90 basis points. Through a combination of successful new<br />
product developments and effective promotional campaigns the Group<br />
has seen its gross margin return to levels experienced prior to 2011, a year<br />
which was materially affected by unprecedented raw material inflation.<br />
DISTRIBUTION AND OTHER ADMINISTRATIVE COSTS<br />
Distribution and other administrative costs increased by £15.2 million,<br />
or 4.3%, as further costs were incurred to support <strong>our</strong> investments in<br />
innovation and technical excellence to strengthen <strong>our</strong> leading competitive<br />
position. Furthermore, additional personnel costs were incurred to deliver<br />
like-for-like sales growth; engineering costs increased to support the final<br />
stages of capital investments; and utility costs also increased as a result<br />
of inflation.<br />
ADJUSTED EBITDA<br />
The adjusted EBITDA for the Group was £115.1 million, compared with<br />
£107.7 million in 2011, an increase of £7.4 million or 6.9%. Adjusted EBITDA<br />
margin increased by 40 basis points from 6.4% in 2011 to 6.8% in 2012.<br />
PAGE 26 VIEW THE FULL REPORT AT ANNUALREPORT12.BAKKAVOR.COM
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