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Bakkavor Group PLC on Tuesday reported increased revenue and profit in 2021 on a strong recovery from the pandemic, despite supply chain and inflation challenges.
In the 12 months to December 25, the London-based fresh food firm recorded pretax profit of £81.4 million, a 84% increase from £44.2 million in 2020.
This was on revenue growth of 4.4% to £1.87 billion from £1.79 billion in the year prior.
The firm attributed this performance to a year of recovery from the pandemic in the UK and China, ‘as sales volumes returned following the easing of Covid-19 restrictions during the period.’
It also noted that its sales performance in the comparative year, 2020, was hurt by the pandemic.
The company reinstated its dividend payments throughout the year, after having paid no dividends in 2020 and suspending its final dividend for 2019.
Bakkavor declared a final shareholder payout of 3.96 pence per ordinary share, taking its total payout for the year to 6.60p per share.
The fresh food company still noted ‘unprecedented’ headwinds in the form of supply chain constraints, labour shortages, and cost inflation throughout 2021. Nonetheless, it mitigated these with supply chain management and tight cost control.
Bakkavor also said that it is optimistic about continued growth in 2022 and beyond.
‘Whilst we, along with the wider industry, have had to manage significant supply chain disruption and labour shortages, it is the resilience of our business model combined with our customer and supplier relationships, category expertise, deep management experience and strengthened financial position that have underpinned our progress during the year,’ the company said.
‘Overall, we have continued to build on the strong foundations put in place in previous years, and in conjunction with our redefined values we are well-positioned to deliver long-term sustainable growth,’ it added.
Shares were up 1.8% at 110.80 pence each on Tuesday morning in London.
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