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Sales dived 5.2% at healthy snacking brand Graze last year as the search for a buyer continues into the New Year.
Retail sales value, as measured by Nielsen, rose 4.8% to £88m across its UK and US operations, but overall revenue fell from £75.8m to £71.8m in the year to 28 February.
Graze said this contrast reflected “the split of revenue… between direct sales and indirect sales”, with supermarket sales growth resulting in a decline in direct to consumer (D2C) business as shoppers accessed the brand in store.
Despite the drop in revenue the company’s losses narrowed, with operating losses down from £2.2m to £1.5m. Graze’s pre-tax losses stood at £13.3m, as the company was impacted by £12m in loan notes, but this still represented a £1.3m improvement on 2017.
The latest accounts come with Graze in the midst of a sale process under Harris Williams. Private equity majority owner Carlyle Group had hoped to complete a sale before the end of 2018, but The Grocer understands a buyer is now expected to be found in the new year.
Click on the grocer.co.uk/finance later this morning for the full story.
Morning update
British American Tobacco (BATS) has made a number of staffing changes “n to accelerate the implementation of our established and successful strategy.”
It was created two new roles – director of new categories to report to its chief marketing officer and director of digital and information, which will report to the CEO
In addition, the roles of chief operating officer and group business development director will cease to exist and all four regions (USA, Europe and North Africa, Asia-Pacific and Middle East and Americas and Sub-Saharan Africa) will report directly to the CEO.
In the light of the changes a number of new appointments have been made.
Paul Lageweg will be appointed as director of new categories from his current role as regional marketing manager.
Marina Bellini will be appointed as director of digital and information. He is currently chief information officer having joined BAT in 2018 having previously served as global CIO at Anheuser-Busch InBev.
Tadeu Marocco, currently regional director, Europe and North Africa, will be appointed to a new role of director, group transformation effective 1 January 2019.
Johan Vandermeulen, currently regional director, Asia-Pacific and Middle East, will succeed Tadeu as regional director, Europe and North Africa.
Guy Meldrum will be appointed to succeed Johan as regional director, Asia-Pacific and Middle East.
Hae In Kim will be appointed as director, talent and culture designate on 1 January 2019 and will succeed Giovanni Giordano, currently group human resources director on 1 April 2019.
Finally, Naresh Sethi, currently group business development director, will leave the company at the end of Q2 2019 having handed over responsibility at board level for IT to Marina Bellini and for global business services and his other areas of responsibility Tadeu Marocco.
CEO Nicandro Durante, said: “We have an established and successful strategy to transform our business and the new roles we are announcing today will enable us to execute this strategy better and faster. Naresh and Giovanni have been instrumental in the success of our transformation to date and I would like to thank them both for their leadership and significant contributions to the Group and wish them all the best for the future.”
CEO designate, Jack Bowles, said: “This is an exciting time for BAT and it is important that the skill set and focus of the Management Board evolves to reflect the environment we are operating in today. The diversity, expertise and experience that Paul, Marina, Hae In and Guy will bring, together with the depth of experience of the existing Management Board, will be key to enable us to accelerate the transformation of our business and capitalise on the great opportunities that lie ahead of us.”
Elsewhere, Dole Food Company has announced today an agreement to sell Saba Fresh Cuts AB and Saba Fresh Cuts OY to BAMA International.
Saba Fresh Cuts AB—with production facility in Helsingborg Sweden—and Saba Fresh Cuts OY—with production facility in Espoo Finland—are producers of washed and ready-to-eat salads selling into the retail and foodservice industry in Sweden, Denmark, Finland, Germany and the Baltic States.
The sale of Saba Fresh Cuts AB was a necessary condition of the European Commission’s approval of the investment by Total Produce into Dole in July 2018.
Johan Linden, CEO of Dole said: “I am very pleased with the outcome of this sale in meeting the EU’s requirement and I am confident that Saba Fresh Cuts will be in good hands under BAMA’s ownership.”
Rune Flaen, CEO of BAMA Group added: “We are pleased to announce this agreement with Dole for Saba Fresh Cuts. Convenience products and ready-to-eat salads and vegetables is a fast growing category in all markets, and Saba Fresh Cuts is a solid and very professional player, with a strong organization and high-quality products.”
This transaction is expected to close in Q1 2019 and is subject to approval by the European Commission.
On the markets this morning, the FTSE 100 has dropped 1.1% back to 6,801.8pts so far.
Fallers include PayPoint (PAY), down 4.6% to 769p, FeverTree (FEVR), down 2.6% to 2,362p, DS Smith (SMDS), down 2.1% to 308.1p and Hilton Food Group (HFG), down 2% to 880p.
Risers include McColl’s (MCLS), back up 6% to 59.8p, Purecircle (PURE), up 2.6% to 278p and Majestic Wine (WINE), up 1.35 to 263.5p.
Yesterday in the City
After much volatility in recent days the FTSE 100 ended yesterday pretty much flat at 6,877.5pts, down less the 3pts.
Sainsbury’s bounced back 1.8% to 279.9p after its heavy fall on Wednesday following its request for more time to respond to the Competition & Markets Authority’s investigation into the merger with Asda.
Ocado (OCDO) rose 1.4% to 804.4p after its retail sales growth improved in the fourth quarter to 12%.
Other risers included PayPoint (PAY), up 4.5% to 806p, Stock Spirits Group (STCK), up 3.5% to 220p, FeverTree (FEVR), up 2.5% to 2,425p, Just Eat (JE), up 1.4% to 580p, Compass Group (CPG), up 1.3% to 1,684.5p and Coca-Cola HBC (CCH), up 1.2% to 2,473p.
PZ Cussons continued to slump following its warning this week that tough conditions in Nigeria will continue to weigh on its profits, falling 7.1% yesterday back to 208.6p.
McColl’s also continued its freefall following its profits warning last week, dropping a further 6% to 56.4p.
Other fallers included WH Smith (SMWH), down 4.4% to 1,843p, Marston’s (MARS), down 4.4% to 95.5p, Glanbia (GLB), down 4.2% to €16.51, Marks & Spencer (MKS), down 3.8% to 266p, PureCircle (PURE), down 2.%5 to 271p, TATE & Lyle (TATE), down 2.2% to 686.6p and Majestic Wine (WINE), down 2.1% to 260p.
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