Bakkavor Group (BAKK) Trading Update summary

Trading performance and financials

• Like-for-like revenue grew 3.9% in Q1 2025, with international volume growth and UK price increases as key drivers.

• Adjusted operating profit guidance for FY25 upgraded to £120m–£126m, reflecting improved outlook.

• Leverage reduced to 1.1x, down 0.3x year-on-year, supported by profit improvement.

Regional highlights and strategic actions

• UK revenue rose 2.7%, US revenue up 7.2%, and China like-for-like revenue surged 19.4%.

• Sale of Hong Kong business completed in March 2025; agreement to sell remaining mainland China business for £50m.

• Group remains on track to achieve 6% adjusted operating profit margin by FY27.

Outlook and management commentary

• Upgraded FY25 profit guidance driven by inflation recovery in the UK and efficiency gains across all regions.

• CEO highlights strong Q1 performance and strategic progress, underpinning confidence in future targets.

• Profit forecast compiled on consistent accounting basis, with assumptions detailed for transparency.