Bakkavor has outperformed expectations as the prepared food business grew volumes ahead of the market in the UK.
It comes despite the group being plagued by disruption in 2024 as strikes at the Spalding site in the Midlands led to shortages of dips, soups, and wraps.
Like-for-like revenues increased 5.1% to £2.3bn in the year to 28 December thanks to improving consumer confidence boosting the wider fresh prepared food market.
Volumes in the UK rose 2.6% and almost back at pre-pandemic levels as shoppers made more frequent trips to the supermarkets.
The group, which supplies the major grocers with soups, ready meals, sauces, salads, dips and pizzas, also improved margins following an efficiency drive.
Adjusted operating profits jumped 20.5% to £113.6m as a result.
Bakkavor said trading in 2025 had started in line with expectations and it was on track to hit a target of a 6% adjusted operating profit margin by FY27.
“The group delivered another strong performance in 2024, as we continued to execute our strategic plans,” said CEO Mike Edwards.
“We saw volume growth in all regions as we have continued to focus on delivering excellent service, quality and innovation for our customers. Our ongoing efficiency focus drove margin improvement and we have further strengthened our balance sheet, which has allowed us to continue to invest in both our business and our people.
“This exceptional performance is testament to the commitment, energy and drive of everyone at Bakkavor, and I would like to thank them for their huge contribution.”
Overall operating profits fell by 3.7% to £93.4m as Bakkavor absorbed £20.2m of one-off costs related to the closure of a lossmaking factory in Wigan and simplifications in the Chinese business.
Bakkavor also highlighted a successful turnaround in the US, returning to growth in the second half of the year, with sales up 9.1% in H2 and by 2% like-for-like in 2024 to £234m.
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