U.K.-based Findus Group remained in the red last year, recording a loss of GBP 110.8 million (EUR 144.7 million, USD 168.5 million) for the year ending 30 September 2014, although the figure was a strong improvement on its loss of GBP 157.8 million (EUR 206.1 million, USD 239.9 million) delivered in the previous 12 months.
According to the group’s board of managers’ report, net turnover fell slightly to GBP 1.1 billion (EUR 1.5 billion, USD 1.7 billion) in 2014 from GBP 1.1 billion (EUR 1.5 billion, USD 1.7 billion) in 2013, despite increased net turnovers being recorded in both the U.K. and French markets last year.
Net turnover for the United Kingdom was GBP 590.5 million (EUR 771.6 million, USD 897.8 million), up from GBP 576.2 million (EUR 752.9 million, USD 875.4 million) in 2013. France’s net turnover for 2014, meanwhile, was GBP 114.1 million (EUR 149.1 million, USD 173.4 million), up from GBP 112.4 million (EUR 146.9 million, USD 170.8 million).
The report confirmed the total sales value fell 2.2 percent last year as a result of adverse foreign exchange movements, but it stressed that sales at “constant currency” actually increased 0.8 percent, despite a volume decline of 4.3 percent.
Gross margin after distribution costs remained constant at 16.4 percent in 2014 from 16.5 percent in 2013. Inflationary increases in raw material costs were passed on as price increases, and there was a continuous focus on margin improvement through cost reduction and efficiency improvement, said the report.
Earnings before interest, tax, depreciation, amortization and exceptional items (EBITDA) were GBP 88.4 million (EUR 115.6 million, USD 134.3 million) for 2014, compared to GBP 89.7 (EUR 117.3 million, USD 136.3 million) for 2013. The report said the latest EBITDA reflects the adverse impact of foreign exchange rate movements on translating non-GBP results into GBP, and that on a constant currency basis, based on unaudited management accounts data, EBITDA in 2014 actually showed an increase of 3.9 percent over 2013.
Headquartered in the United Kingdom but also operating in Southern Europe and the Nordics, Findus has a broad product portfolio, which includes frozen and chilled fish and seafood, vegetables, potatoes, ready meals and snacks. Its products are sold primarily under the Findus and Young’s brands as well as through private label.
Of the group’s turnover, 83 percent is derived from retail consumers. Within the retail grocery market, its three largest customers account for 34 percent of its overall turnover.
