Bakkavor Group (BAKK)

Sector:

Food

Index:

FTSE Small Cap

70.50p
   
  • Change Today:
      1.50p
  • 52 Week High: 149.60
  • 52 Week Low: 58.60
  • Currency: UK Pounds
  • Shares Issued: 579.43m
  • Volume: 75
  • Market Cap: £408.50m
  • RiskGrade: 398

Bakkavor warns coronavirus to hit annual profit

By Sean Farrell

Date: Thursday 27 Feb 2020

LONDON (ShareCast) - (Sharecast News) - Bakkavor warned the impact of the coronavirus could reduce earnings by up to £10m in the current financial year as the fresh foods business reported a 19% fall in annual operating profit.
The FTSE 250 company, which employs more than 2,000 people in China, said its Chinese business had been hit by a sharp drop in demand, big production declines at all sites and the temporary closure of operations in Wuhan and Taicang.

As a result, adjusted annual earnings at Bakkavor's international business could be £6-10m lower than in 2019, the company said. The international division, the company's main source of growth, increased earnings by 10.3% to £5.4m in 2019 as UK earnings were little changed at £147.1m.

The company's shares fell 5.3% to 118.05p at 10:20 GMT amid a wider drop in equity markets as investor concerns about the coronavirus threat mounted.

Operating profit for the year to the end of December dropped to £69.4m from £85.6m as revenue rose 1.5% to £1.9bn. Operating profit fell because of £20.3m of exceptional costs and £15.5m of startup losses for new sites. Adjusted earnings were flat at £153.5m.

Bakkavor makes own-brand food products for grocery retailers in the UK and the US and supplies food service operators in China, where it has traded for more than 10 years. The company joins other UK businesses such as Burberry, Diageo and John Menzies in warning about the effect of the virus on performance as fears grow about the impact on the global economy.

Chief Executive Agust Gudmundsson said: "In China, whilst 2020 started well, the recent coronavirus outbreak is now having a significant effect on our business. Volumes are significantly down in February and currently there is no clear visibility as to when more normal trading conditions might resume. It is therefore very difficult to assess the financial impact."

Gudmundsson said Bakkavor maintained profitability in the UK in 2019 despite rising labour costs and weak consumer confidence. UK labour costs will increase by more than 5% in 2020 but sales volumes will rise after recent business gains, leading to "progressive" UK earnings for the year.



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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Bakkavor Group Market Data

Currency UK Pounds
Share Price 70.50p
Change Today 1.50p
% Change 2.17 %
52 Week High 149.60
52 Week Low 58.60
Volume 75
Shares Issued 579.43m
Market Cap £408.50m
RiskGrade 398

Bakkavor Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
98.02% above the market average98.02% above the market average98.02% above the market average98.02% above the market average98.02% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Price Trend
75.86% below the market average75.86% below the market average75.86% below the market average75.86% below the market average75.86% below the market average
79.31% below the sector average79.31% below the sector average79.31% below the sector average79.31% below the sector average79.31% below the sector average
Income
90.26% above the market average90.26% above the market average90.26% above the market average90.26% above the market average90.26% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Growth
55.41% below the market average55.41% below the market average55.41% below the market average55.41% below the market average55.41% below the market average
93.1% below the sector average93.1% below the sector average93.1% below the sector average93.1% below the sector average93.1% below the sector average

What The Brokers Say

Strong Buy 2
Buy 0
Neutral 6
Sell 0
Strong Sell 1
Total 9
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Bakkavor Group Dividends

  Latest Previous
  Interim Final
Ex-Div 19-Sep-19 02-May-19
Paid 11-Oct-19 29-May-19
Amount 2.00p 4.00p

Trades for 15-Jul-2020

Time Volume / Share Price
08:12 75 @ 70.50p

Bakkavor Group Key Personnel

CEO Agust Gudmundsson
CFO Peter Gates

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