Karro Food Group Back in the Black
Karro Food Group, one of the leading suppliers of British pork into the retail, trade and foodservice industries, has delivered a significant annual profit following a period of transformation.
Karro has posted an EBITDA profit of £8m for the year ended 31 December 2014, representing an £11m EBITDA improvement on the previous year and the group’s first profit for many years.
Karro Food Group’s 2014 performance highlights include:
- An £11m improvement in EBITDA, the second consecutive year Karro has delivered EBITDA improvement of more than £10m;
- Turnover of £528m, similar to the previous year;
- The launch of a £10m capital investment programme, financed from cash generated by the business, into processing and production across its UK manufacturing facilities, including an £8m industry leading investment at its largest facility in Northern Ireland; and
- Further expansion of the group’s customer base at both national and international level.
Di Walker, Executive Chair of Karro Food Group, said: “Following Karro’s acquisition by private equity house Endless LLP in January 2013, Karro Food Group implemented a five year plan to transform the underlying performance of our business through operational improvements that could deliver value to both Karro Food Group and its customers.”
“It is therefore extremely pleasing to announce that Karro Food Group will have achieved the targets set out in that plan – namely to ensure Karro Food Group is fit for the future and firmly focused on growth - within just three years. This is a fantastic achievement and a clear recognition from our customers that the revitalised group is a very welcome market participant.”
“Our firm focus moving forward is to continue this positive trajectory. We have an appetite to make acquisitions and this strategy will be supported by our recently announced £74m funding package from GE Capital and RBS Invoice Finance, providing additional capital to support the group’s UK and international expansion and acquisitions strategy.”
“We also continue to be focused on organic growth and will further develop our retail and trade partnerships, as well as expand our international customer network in markets including Australia, China, Japan, Korea and the United States.”
Chief Financial Officer Michael Kestemont said that the second year of Karro’s profit growth had been realised in a year characterised by significant competitive pressure within the UK pork industry.
Looking ahead, Mr Kestemont added: “With ongoing support of our funding partners, Karro Food Group is confident that 2015 will bring significant EBITDA and cash generation progression, driven by further capital investment and continuous operational and commercial improvements across the group.”
“The increasing success of Karro Food Group and its strong financial performance is giving both suppliers and customers the confidence to want to grow long-term strategic partnerships with the group, cementing our position as a leading player in the UK and international pork industry.”