Prepared foods company Bakkavor has reported a 7.4% increase in like-for-like revenue in the first half of its financial year, which it says was driven by price as well as volume recovery in China.
Reported revenue rose by 7.9%, to £1.09 billion (€1.28 billion), while adjusted operating profit was up 2.1%, to £43.4 million (€50.9 million).
'Strong Performance'
"I am pleased with the strong performance the Group has delivered in the first half, and the momentum this has created as we move through the rest of the year," commented Mike Edwards, chief executive.
"Our continued market share gains in the UK reflects our consistent delivery for customers and demonstrates that our broad product range continues to meet the needs of shoppers during the cost-of-living crisis."
Bakkavor has made a 'strong start' to the year, despite tough market conditions, it said, with the group confident of taking positive momentum into the second half.
While volumes were up in China, in its home market of the UK, volumes were marginally down, although the business said that it 'continued to outperform the market'.
In the US, the business reported 'good underlying growth', although volumes were down due to the loss of a major customer.
Rest Of The Year
Looking ahead to the remainder of the year, Bakkavor said that it expects to report FY23 adjusted operating profit in line with the previous year's total of £89.4 million.
Elsewhere, strong cash generation is expected to deliver a further improvement in net debt, it noted.
"We are confident in delivering an upgraded full year performance, with adjusted operating profit now anticipated to be at least in line with last year and ahead of current market expectations," said Edwards.
"This is underpinned by the execution of our restructuring, which is driving performance and synergies across the business ahead of our expectations. I am also pleased that we now have momentum building in all three regions, which is positive as we look forward."
