Karro’s turnover was £528M for the period, a slight decrease from its 2013 turnover of £533M.
The profit – measured as earnings before interest, taxes, depreciation and amortisation (EBITDA) – came two years into a five-year plan return the firm to growth following its acquisition from Vion by private equity house Endless LLP, Karro’s executive chair Di Walker said.
“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 is fit for the future and firmly focused on growth – within just three years,” she said.
“This is an achievement reflected in these stand-out results and a clear recognition from our customers that the revitalised group is a very welcome market participant.”
Karro received a £74M grant from GE Capital and RBS Invoice Finance to support the group’s UK and international expansion and acquisitions strategy, Walker said.
“Our firm focus moving forward is to continue this positive trajectory,” she added. “We have an appetite to make acquisitions and this strategy will be supported by our recently announced £74M funding package.
Karro’s 2014 results in numbers
- £11M improvement in EBITDA
- £528M turnover
- £74M pledged for expansion 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.”
The “ongoing support” Karro’s funding partners would help bring “significant” profit in 2015 driven by further capital investment and continuous operational and commercial improvements across the group, Karro’s chief financial officer Michael Kestemont claimed.
“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,” he said.
Earlier this year, Karro pumped £10M into production and processing improvements across its UK operations.
Headquartered in Malton, North Yorkshire, Karro employs around 3,000 people across the UK and has eight divisions in England, Scotland, Northern Ireland and Ireland.