Prepared food maker Bakkavor Group plc has reported 12.7% increase in LFL revenue to £542.5 million (€630.3 million) in the first quarter of its financial year.
In the UK, revenue growth was driven by price, the company noted. Bakkavor gained market share during the quarter despite pressure on household budgets impacting volumes in September.
The company saw 'strong revenue momentum' in the US, driven by sustained demand and price increases.
However, its operational performance remained challenging due to disruption as significant volumes were onboarded.
In China, the company's volumes continued to recover, with LFL revenue exceeding that of 2021, resulting in some margin improvement.
Outlook
The group noted that it continued to trade in line with market expectations, and preparations for the Christmas period are progressing in line with its plans.
It has forecast adjusted operating profit for the full financial year to remain at the lower end of market expectations at approximately £90.3 million (€104.9 million).
Mike Edwards, CEO, commented, “We continue to operate in an incredibly challenging environment. Bakkavor has proven itself to be a resilient business effectively navigating the turbulence of recent years. We are now taking further decisive action to ensure we deal with the ongoing headwinds and protect future profits.
“These actions, combined with our strong balance sheet, breadth of capability and products, customer relationships and growing market share, means we are well-placed to deal with the short-term challenges, and deliver our longer-term ambitions for colleagues and stakeholders.”
© 2022 European Supermarket Magazine – your source for the latest A-brand news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
