16 January 2025
Full year 2024 trading
update
Strong 2024 performance ahead
of market expectations
Bakkavor Group plc ("Bakkavor" or
the "Group"), the leading international provider of fresh prepared
food ("FPF"), today updates on trading for the 52 weeks to 28
December 2024 ("FY24"), ahead of the publication of its full year
results on 4 March 2025.
|
£
million
|
Like-for-like1
('LFL')
revenue
|
LFL
growth
|
Reported
revenue
|
Growth
|
|
Group
|
2,300.9
|
5.1%
|
2,292.7
|
4.0%
|
|
UK
|
1,948.5
|
5.2%
|
1,948.5
|
5.2%
|
|
US
|
234.0
|
2.0%
|
227.7
|
(0.7%)
|
|
China
|
118.4
|
11.3%
|
116.5
|
(4.3%)
|
Strong revenue growth with profit ahead of market expectations
and strengthened balance sheet as the Group continues to deliver
good progress against its strategy
· LFL
revenue up 5.1% and reported revenue up 4.0% (including the impact
of currency and the China Bakery up to disposal)
· UK:
Improved volumes and some price recovery drove growth. Bakkavor
Operating System delivering efficiencies, underpinning profit and
margin improvement
· US:
Returned to growth in H2 in line with expectations, with strong
operational delivery supporting a step up in profit
· China:
Volumes strengthened, driven by retail and adding new foodservice
customers. Remains cash generative and self-sufficient, with
improved profitability
· Good strategic
progress as we continue to deliver on our regional priorities, with
an ongoing focus on efficiencies
· As a result, the
Group anticipates FY24 adjusted operating profit to be at least in
line with the upper end of market
expectations2
· Operational net
debt reduced further in H2, with leverage also improved and
expected to be towards the bottom-end of our target range (1.0x -
2.0x)
· Impact
of UK budget: c.£15m annualised impact of changes to National
Insurance (effective April 2025) expected to be mitigated through
price recovery and our ongoing efficiency improvements
Looking forward, confident of continuing to deliver against
our strategy as we remain focused on driving adjusted operating
profit margin to 6% in the medium-term
Mike Edwards, CEO,
commented:
"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.
I would like to thank all colleagues
for their commitment, energy and drive which has been fundamental
to our delivery. Our improved financial performance will help us
continue to invest in our business and our people.
Looking forward, we expect to
deliver further progress as we continue on our trajectory to our 6%
margin target."
1. LFL
revenue adjusts reported revenue for the effect of foreign currency
movements and the China Bakery disposal.
2. Based on
company compiled consensus ("Consensus") which includes all
covering analysts. FY24 adjusted operating profit Consensus
£110.4m, range £108.0m to £111.5m.
ENQUIRIES
Institutional investors and analysts:
Lee Miley, Chief Financial
Officer
Emily Daw, Head of Investor Relations
+44(0)20 7908 6114
Financial media:
bakkavor@mhpgroup.com
Katie Hunt, MHP
+44(0)7884 494 112
Rachel Farrington, MHP
+44(0)7801
894 577
About
Bakkavor
We are the leading provider of fresh
prepared food in the UK, and our presence in the US and China
positions the Group well in these high-growth markets. We leverage
our consumer insight and scale to provide innovative food that
offers quality, choice, convenience and freshness. Our c.18,000
colleagues operate from 43 sites across our three markets supplying
a portfolio of over 3,000 products across meals, pizza & bread,
salads and desserts to leading grocery retailers in the UK and US,
and international food brands in China.
LEI number:
213800COL7AD54YU9949
Disclaimer - forward-looking statements
This statement includes
forward-looking statements. By their nature, forward-looking
statements involve risk, uncertainty and other factors, which may
cause the actual results and developments of the Group to differ
materially from any results and developments expressed or implied
by such forward-looking statements. You should not place undue
reliance on any forward-looking statements. These forward-looking
statements are made as of the date of this statement. The Group is
under no obligation to publicly update or review these
forward-looking statements other than as required by
law.
