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Bakkavor Group PLC - London-based fresh prepared food company - Reports higher profit for the first quarter ended March 26, boosted by a strong US fresh meals market, while full year forecasts remain in line with management expectations. Pretax profit rises to £485.4 million, up 12%.
Revenue climbs 12% to £485.4 million. Regionally, UK revenue rises 8.7%, US revenue surges 41%, while in China, growth is more muted at 5.5%. Adds that UK like-for-like sales growth to a revenue of £407.4 million was ‘driven by price and good volumes against a period impacted by lockdown.’
Reports strong sales in the US through continued growth, especially with fresh meals.
‘In China, regional restrictions have significantly impacted performance from March onwards,’ Bakkavor cautions. It says more price increases in the UK will hit volumes, while in China, the ‘near-term outlook remains uncertain’ amid the nation's strict zero-tolerance Covid-19 policy.
Bakkavor still forecasts a full-year result in line with management expectations. ‘In the UK, further price increases in the market may have some impact on volumes, however, our category breadth and strong pipeline of innovation mean we are well placed to underpin growth,’ it adds. Expects further ‘strong volume growth’ in the US.
Current stock price: 99.39 pence, down 0.6% on Wednesday
12-month change: down 26%
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