Bakkavor Group (BAKK) Trading Update summary

Trading performance

• Like-for-like revenue grew 5.1% to £2,300.9m, with reported revenue up 4.0% to £2,292.7m.

• UK revenue rose 5.2% to £1,948.5m, driven by improved volumes and price recovery, with operational efficiencies supporting margin gains.

• US operations returned to growth in H2, with strong operational delivery and increased profit.

• China saw 11.3% LFL revenue growth, with strengthened volumes from retail and new foodservice customers, remaining cash generative.

• Adjusted operating profit for FY24 is expected at least at the upper end of market expectations (£108.0m–£111.5m).

Strategic and operational highlights

• Continued progress on regional priorities and efficiency initiatives.

• Operational net debt reduced further in H2, with leverage expected at the lower end of the 1.0x–2.0x target range.

• Anticipates mitigating a £15m annualised UK National Insurance cost increase through price recovery and efficiency improvements.

• Focus remains on driving adjusted operating profit margin to 6% in the medium term.

• Improved financial performance supports ongoing investment in business and people.

Outlook and management commentary

• Confident in delivering further progress towards the 6% margin target.

• CEO highlights strong 2024 performance, exceptional Christmas peak delivery, and ongoing commitment to quality, service, and innovation.

• Enhanced balance sheet and margin rebuilding position the group for continued growth.

• Group remains focused on strategic execution and operational excellence.

• No obligation to update forward-looking statements beyond legal requirements.