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Strong salad sales help Bakkavor grow revenue

The food manufacturing giant's Q3 result for the 13 weeks ending 26 September 2015 saw it post a turnover of £419.9 million

Strong salad sales help Bakkavor grow revenue

Agust Gudmundsson

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Boosted by a strong performance from its salad division, Bakkavor has grown its revenue.

The food manufacturing giant's Q3 result for the 13 weeks ending 26 September 2015 saw it post a turnover of £419.9 million, up from Q3 2014's figure of £408.7m.

The business also pointed to a solid showing from its international business.

Commenting on the results, Agust Gudmundsson, Bakkavor chief executive officer said: “The group has reported an excellent set of results with revenue growth, margin improvement and strong cash conversion.

"We expect trading conditions to remain challenging, particularly due to intense retailer competition, however we approach the Christmas period with good momentum and we remain confident in our strategy for the future.

"On a like-for-like basis, excluding acquisitions, sold and closed businesses, and at constant currency, revenues increased by 2.2 per cent, as our international operations reported another quarter of strong growth.

Growth in the business' salad category in Q3 was volume driven.

Gudmundsson added that Bakkavor continues to see pressure on labour costs across its operations, and the introduction of the National Living Wage from April 2016 will "represent a further challenge".

"We are assessing the impact of this increase and working with all our stakeholders to mitigate costs where possible," he noted.

 

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