Record year for R&R Ice Cream as revenues approach €1bn mark

PRIVATE label ice cream manufacturers R&R Ice Cream has hailed a record performance with revenues approaching €1bn, boosted by acquisitions and improved trading across Europe.

For the year to December 2015, the Leeming Bar-based business increased turnover to €991.6m from €837.8m. Last May it bought R&R South Africa for €8.6m, providing a platform for growth in South Africa and across the African continent.

Adjusted EBITDA increased to €187.7m from €140.0m. The company said the year-on-year increase was partly as a result of the full-year impact of Australian food brand Peters, which it acquired in June 2014, and the post-acquisition results of South Africa.

R&R said it also benefited from a “substantial improvement” in trading across central and southern Europe across the 2015 summer, efficiencies generated from further operational improvements across Europe and a change in mix towards branded products.

The group’s trading performance was also boosted by the increase in the strength of sterling to the Euro in the year, benefiting turnover by €25.7m and adjusted EBITDA by €6m although it said the exchange rates of Australia and South Africa were below budgeted levels.

In October, R&R announced it was in talks with Nestlé to set up a joint venture across Europe and Africa, combining Nestlé’s brands and exporting knowledge with R&R’s manufacturing model and retail presence.

Each partner would own an equal share of the new joint venture which would operate in more than 20 countries and employ more than 10,000 people.

“At this stage, we have no further update on the potential joint venture,” the company said.

However, R&R said it continues to evaluate acquisition opportunities that may improve its market share and product offerings, reduce costs, or allow it to enter new geographic markets.

The business has completed 11 acquisitions since 2007.

R&R Ice Cream was founded by Yorkshire entrepreneur James Lambert. It manufactures ice cream for brands such as Cadbury Flake Cones, Rowntree’s Fruit Pastille lollies and Kelly’s Cornish ice cream.

Mr Lambert retired from the business in 2014.