Bakkavor grew revenue by 4% to £2.2bn last year despite supply disruption caused by strike action at one of its major factories.
The UK is the company’s biggest market and is performing strongly with sales up 5.2% to £1.9bn thanks to improved volumes and price rises.
Strikes at Bakkavor’s Spalding site in the Midlands led to shortages of dips, soups, and wraps across all the big supermarkets in November, but this seemingly had little effect on sales.
Elsewhere, China and the US fell by 4.3% and 0.7% respectively. China was hit by the sale of its regional bakery business in April, although volumes strengthened due to a strong retail performance and new foodservice customers.
Bakkavor said the US returned to growth in the second half of the year.
In its trading update for the year, Bakkavor said it expects the full year’s operating profit to be “at least in line” with the upper end of market expectations of £108m to £111.5m. The group is targeting a 6% margin in the medium-term.
“We delivered a strong performance in 2024 as we continue rebuilding our margin and strengthening our balance sheet,” said CEO Mike Edwards.
“Throughout the year we have delivered excellent quality, service and innovation for our customers, culminating in exceptional delivery of our Christmas peak.”
Changes to the UK’s national insurance regime are set to cost Bakkavor around £15m which will be mitigated through price rises and ongoing efficiency improvements.
No comments yet