Fresh prepared food maker Bakkavor has posted like-for-like revenue growth of 7.6% to £522.6 million (€609.1 million) in the first quarter of its financial year.
This performance was driven by price as well as volume recovery in China, the company said.
In the UK, Bakkavor continued to win market share, driven by strong service and net business gains.
The company's UK business generated revenue worth £440.3 million (€513.2 million), up 8.1% year-on-year.
In China, like-for-like revenue increased by 17.1% to £26.9 million (€31.4 million), reflecting positive volume recovery post the COVID-19 pandemic.
'An Encouraging Start'
Mike Edwards, CEO of Bakkavor commented, “The group has made an encouraging start to trading in 2023 and, with momentum expected to continue in all regions, our outlook for FY23 is now at the upper end of market expectations.
"The fundamentals of our business remain strong, as we continue to win market share, demonstrate strong operational delivery and maintain a robust balance sheet. We are confident of making further progress through the remainder of this year and into 2024."
Outlook
Bakkavor expects further share gains in the UK, with strong operational performance and price recovery to offset subdued underlying volumes.
In the US, a renewed focus on profitability is starting to deliver in line with expectations, the company noted.
In China, volume momentum is expected to continue to build steadily, supported by diversification into retail.
The company hoped to save £17 million (€19.8 million) in its financial year 2023, ahead of its previous guidance, due to accelerated delivery of restructuring plans.
Read More: Greencore Sees Revenue Up By A Fifth In First Half
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