Bakkavor boosted by UK food demand amid fresh annual revenue growth
Bakkavor Group PLC on Thursday celebrated an ‘exceptional delivery of our Christmas peak,’ as revenue grew comfortably in 2024, with the company confident in the future.
The London-based ’fresh prepared’ food manufacturer said revenue grew 4.0% to £2.29 billion in the financial year ended December 28, from £2.20 billion it had reported for financial 2023.
Notably, revenue in the UK rose 5.2% on-year, while it was down 4.3% in China and 0.7% lower in the US.
The UK accounts for 85% of the company’s total revenue.
Chief Executive Officer Mike Edwards said: ‘We delivered a strong performance in 2024 as we continue rebuilding our margin and strengthening our balance sheet. Throughout the year we have delivered excellent quality, service and innovation for our customers, culminating in exceptional delivery of our Christmas peak.’
Looking ahead, Bakkavor expects an impact of around £15 million annualised due to the increase in national insurance contributions for UK employers, effective from April. The firm expects these cost increases to be mitigated via price recovery and efficiency improvements.
The company expects to continue to deliver against its strategy as it targets an adjusted operating profit margin of 6% in the medium-term, compared to 4.3% in financial 2023.
Bakkavor anticipates financial 2024 adjusted operating profit to be at least in line with the upper end of market expectations, for which it cites a range of £108.0 million to £111.5 million, compared to £94.3 million in financial 2023.
Bakkavor will release financial 2024 results on March 4.
Bakkavor shares rose 5.9% to 151.50 pence each on Thursday morning in London.
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