Bakkavor Group (BAKK) H1 2025 earnings summary

Executive summary

• Delivered strong H1 2025 results with adjusted operating profit up 9.8% and margin improvement to 5.7%, underpinned by operational efficiencies and strategic execution.

• Strategic exit from China and Hong Kong completed, generating £51m in proceeds and reducing risk exposure.

• Upgraded FY25 profit guidance to the upper end of £120m–£126m and accelerated 6% margin target to FY26, one year ahead of plan.

• Acquisition by Greencore approved by shareholders, with regulatory review ongoing and completion expected in Q1 2026.

Financial highlights

• Reported revenue for H1 2025 was £1,076.3m, up 0.9% year-over-year; like-for-like revenue grew 1.2%.

• Adjusted operating profit rose 9.8% to £61.5m, with margin up 50bps to 5.7%.

• Adjusted EPS increased to 6.4p; basic EPS fell to 2.9p due to exceptional costs.

• Free cash flow of £47.3m; operational net debt reduced to £194.8m; leverage at 1.1x.

• ROIC improved to 11.2%, up 190bps year-over-year.

Outlook and guidance

• FY25 adjusted operating profit expected at the upper end of £120m–£126m.

• Revenue guidance unchanged: broadly flat, with UK growth offset by site closures and US to see low single-digit growth.

• Capital expenditure guidance reduced to £65m; leverage expected to fall below 1x post-China proceeds.

• Inflation impact for FY25 estimated at £65m, with recovery supported by pricing and efficiency gains.

• 6% margin target accelerated to FY26.