Findus Group saw a 4.6% fall in revenues in its first quarter including Christmas, according to figures released to its bondholders.
Turnover fell to £269m in the 13-week period to 27 December, largely as a result of negative currency impacts from the strong pound. UK revenues were unchanged at £147m, while Southern Europe proved the standout region with net turnover up from £39.1m to £41.8m.
Overall group EBITDA fell 5.8% to £19.1m, while pre-tax losses narrowed marginally from £37.6m to £37.3m. However, like-for-like sales and EBITDA were flat once currency fluctuations were factored out.
James Hill, chief executive, said: “Findus Group has delivered steady results for the first quarter of our financial year ending 2015, with sales and EBITDA in line with performance the previous year.”
He said the Southern Europe growth offset “challenges” in some other markets. “The re-launch of the Young’s master brand, and new TV advertising in the UK, comes at a time when the brand’s Gastro innovation reaches more than £20m sales (RSP) in the UK. Findus Group’s full year forecast growth remains in line with our plan,” Hill said
He added that Findus’s performance continued to be “positive” and it was on track with its plan, with operating cash-flow of £67m and EBITDA of £91m for 2014 – up 4% on last year.
“This is the second consecutive year of positive growth,” he said.
According to the information provided to bondholders, all Findus’ markets saw EBITDA growth, except Sweden which was down due to currency-related issues.
UK earnings growth was driven by “continued chilled market growth” and “strong cost performance”.
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