Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was also up substantially to €187M (£144.6M) – representing 18.9% of turnover compared with €140M – or 16.7% of turnover last time.
The multinational own-label ice cream manufacturer said the increase was partly attributable to the first full-year contribution from the Australian ice cream company Peters and the post acquisition results of Nestlé South Africa’s ice cream business.
R&R Ice Cream acquired the Australian business in June 2014 and the Nestlé firm in May last year.
It also benefitted from a substantial increase in trading across central and southern Europe in summer 2015 – particularly organic growth in Italy and France. Other factors were said to be greater efficiencies and a change in mix towards branded products.
Strength of sterling
The strength of sterling against the Euro also boosted turnover by €25.7M (£19.88) and adjusted EBITDA by €6M (£4.64M). But the exchange rates of the Australian dollar and South African rand were below budgeted levels.
The company also achieved a substantial reduction in the level of one-off and exceptional costs compared with 2013, and 2014, when it carried out reshaping of the group’s activities and finances.
It said a smaller amount of restructuring costs had extended into 2015. But the greater proportion of exceptional costs this year related to aborted refinancing costs and costs associated with its potential joint venture with Nestlé.
Advanced discussions with Nestlé
On October 5 last year R&R announced it was in advanced discussions with Nestlé to set up a joint venture covering ice cream, based mainly in Europe and Africa.
In its results it said there was no further update, other than the exceptional costs of €1.3M, and that a further announcement would be made in due course.
Looking ahead it said new product development was the key driver of growth across branded and retailer products.
After success in France, Germany, Italy, and Poland, as well as the UK, R&R pledged to continue to leverage its relationship with Mondelēz International.
Following gains from factory consolidation in 2014 and particularly 2015, it also aimed to improve EBITDA with targeted investments in 2016 to driving efficiency and reduce overheads.
R&R Ice Cream results – at a glance
- Turnover approaches €1bn (£773.37M) to reach €992M (£767.23)
- EBITDA reaches €187M
- Strength of sterling against the Euro boosted turnover by €25.7M and adjusted EBITDA by €6M