Bakkavör Group Remains Iceland’s Largest Company Skip to content

Bakkavör Group Remains Iceland’s Largest Company

fv08-09-2011-forsidaIcelandic business magazine Frjáls verslun’s annual listing of Iceland’s 300 largest companies was published last week, concluding that for the third year in a row, Bakkavör Group, a provider of food products, tops the list with ISK 293 billion (USD 2.5 billion, EUR 1.9 billion) in annual income in 2010.

Actavis Group places second and Icelandair Group third, while Landsvirkjun, the national power company, had the most equity of all companies in Iceland in 2010 of ISK 189 billion (USD 1.6 billion, EUR 1.2 million) and an equity ratio of 34 percent, as stated on the publisher’s website.

As for salaries, the fishing company Stálskip in Hafnarfjördur pays the highest average wages, almost ISK 21 million (USD 182,000, EUR 132,000) per year, or approximately ISK 1.8 million (USD 16,000, EUR 11,000) per month.

In related news, Fréttabladid reported on Friday that the CEO of Bakkavör Group Ágúst Gudmundsson earned ISK 111.7 million (USD 968,000, EUR 705,000) in work-related payments and pension benefits last year, which means that he had an average monthly pay of ISK 9.3 million (USD 81,000, EUR 57,000), including benefits.

At the same time Bakkavör Group lost ISK 2.5 billion (USD 22 million, EUR 16 million). This information was included in the Bakkavör conglomerate’s annual accounts handed in to the Annual Account Registry in September 2011.

However, Gudmundsson’s salaries have dropped considerably from 2008 when he earned a total of ISK 182.2 million (USD 1.6 million, EUR 1.2 million).

Bakkavör Group made a composition with its claimants in March 2010, according to which the company is obligated to repay them ISK 92 billion (USD 797 million, EUR 580 million) until the end of 2014.

If successful, Gudmundsson and his brother Lýdur Gudmundsson, who is the company’s chairman, will maintain their 25 percent share in Bakkavör, which they founded in 1986. However, if they fail, claimants will convert their claims to shares in the company and take over the brothers’ assets.

Despite being the country’s largest company, the operation of Bakkavör has not been as successful as assumed in the composition. According to Fréttabladid’s sources, it is considered unlikely that the debt can be repaid in the period stated.


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