Bakkavor lifts full-year profit outlook
Fresh food provider Bakkavor lifted its full-year profit outlook on Wednesday as it reported an "encouraging" first-quarter trading performance, in line with expectations.
In an update for the 13 weeks to 1 April, Bakkavor posted group like-for-like revenue growth of 7.6% to £522.6m, driven by price as well as a volume recovery in China.
In the UK, LFL revenue rose 8.1% to £440.3m as the company continued to win market share, thanks to strong service and net business gains. In the US, meanwhile, LFL revenue was 0.4% higher at £55.4m, with good underlying volume and price growth, which was offset by the loss of volume from a customer.
Bakkavor pointed to good revenue momentum in China, reflecting positive volume recovery after Covid. LFL revenues there increased 17.1% to £26.9m.
The company said it continued to largely mitigate inflationary pressures "through pricing, value optimisation, operational efficiency improvements and cost control actions".
With momentum expected to continue in all three regions, the group now sees full-year adjusted operating profit at the upper end of the range of market expectations of £80m to £85m.
Chief executive Mike Edwards said: "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.
"There is no doubt that the changes we have made as part of our restructuring plans are underpinning performance. I would like to thank our teams for embracing and embedding these changes so quickly.
"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."