Revenue at Bidfood rose 16.8% to £2.3bn in its latest full year, but profit after tax fell 14.8% to £34.9m amid “operational cost pressure”, according to accounts at Companies House.
The revenue growth in the year to 30 June 2024 was thanks to “strong trading and continued food inflation”, the accounts said.
The foodservice business said it had boosted capacity at its new depot in Bedfordshire while also increasing volumes “by winning significant new business”. It said it had also increased prices in response to inflation.
However, its operating profit margin saw a decline of 0.7 percentage points due to increasing costs of overheads, driven by inflation and continued investment. Gross margin profit also decreased by 0.1 percentage points as a result of inflation and changes in the product mix.
Despite the dip in profits, it “still represented an excellent trading year given the current economic environment”, the accounts said.
The accounts also announced the first tranche of suppliers to gain listings with the foodservice giant via its new SME accelerator scheme, Open Doors.
Bidfood said the scheme identified the most “innovative and interesting brands from small food and beverage suppliers trying to establish themselves within the market”.
“With inflation taking its toll on the industry, confidence from small business owners is wavering,” the company said. “The scheme goes hand in hand with our key ingredient of being a positive force for change.”
The accounts also referenced the launch of a new product called Slim Stock to boost its ordering capabilities and reduce levels of idle stock.
“It has empowered the supply chain team to be more agile and responsive,” the accounts said. “Operationally, we can align processes with forecasted customer demand, driving operational efficiency and ultimately improving customer service.”
No comments yet