Pre tax profit of £3.1 million in the first quarter

The Group’s operations were consistent with the Group’s plans for the period. Sales in continuing operations increased by 17% compared with last year and amounted to £34.1 million. Working capital from operations amounted to £3.9 million in the quarter compared with £3.1 million the year before and increased by 25%. Operating profit (EBIT) amounted to £3.1 million compared with £2.7 million last year and increased by 12% between years.  Profit after taxes amounted to £2.2 million and increased by 13.4% in the period.

Operations in the first three months

Operations in the first three months of 2004 went well and were consistent with the Group’s plans. After the sale of the seafood business seasonal fluctuations do not affect the business to the same degree as it did before although there are some fluctuations in both the first quarter and the last with the fourth quarter being the best and the first the least. Total growth for the period was 2.5% since the same time last year the seafood business stilll formed a part of the Group. Growth from continued operations was however 17% for the first three months and Group sales amounted to £34 million in the period. Promotional activities in co-operation with the Group’s main customers have been high during the period and has special emphasis been placed on healthy ranges to meet customer demand for healthier options after the christmas season.

New product development activities have been strong in the first three months with over 40 new and improved products launched in the first quarter. Work on new product development for the whole year is also well under way.

The Group’s EBITDA amounted to £5.1 million against 4.9 million same time last year. The ratio to revenues was 15.1% compared with 14.8% the year before and is the ratio to revenues normally the lowest in the first three months of the year.  Operating profit (EBIT) was £4.2 million  compared with £3.8 million for the same time last year and increased by 12% between years. Financial expenses amounted to £1.1 million. Taxes for the period amounted to £919 thousand. The net result was £2.2 million in profit which is an increase of 13.4% between years.

The Group’s balance sheet changed positively in the first three months of the year with long term liabilities decreasing from £94.3 million at year end 2003 to £92.3 million in the period and current liabilities decreasing from £30.7 million at year end 2003 to £25 million  in the period. Stocks decreased from £4.2 million to £2.9 million in the period or by £1.3 million.

Equity increased from £72 million to £77 million from year end 2003. The equity ratio is now 43% including the subordinated loan. Return on equity was 11.6% in the period and the current ratio was 3.2 but was 2.77 at year end 2003. The Group has £55 million available in cash and unused revolvers in excess of £12 million.

The Group’s cash flow was strong in the period. Working capital from operations amounted to £3.9 million in quarter compared with 3.1 million for the same period last year and increased by 25%.

Kaupthing Bunadarbanki hf. partly exercised their conversion rights for bonds issued be Bakkavör Group in the period. The bank converted 19.2% of the total holdings of the bank in the convertible bonds to 95.538.006 shares in Bakkavör Group.

Future prospects

Bakkavör’s operating prospects for the remainder of the year are good. The Group’s management expects the company to continue to grow rapidly on its markets and is also working on projects which will lead to further expansion.

For further information please contact:

Ágúst Gudmundsson, Chairman of the Board of Bakkavör Group hf.

Tel:+44 7900 901 384                                                         

Lýdur Gudmundsson, CEO of Bakkavör Group hf.

Tel: +44 7900 901 385

To view full statement and press release:

Click here for Interim statement 1Q 2004

Click here for full press release 30th of April 2004

Click here for presentation of interim results