Kitwave Group (KITW) H2 2025 earnings summary

Executive summary

• Achieved record revenue of £802.7 million, up 20.9% year-over-year, with gross margin improving to 22.8% from 22.3%.

• Adjusted operating profit rose 11.7% to £38.0 million, and adjusted EBITDA increased to £53.4 million.

• Strong cash generation from operating activities at £46.4 million, with pre-tax operational cash conversion at 104%.

• Completed integration of Total Foodservice and Miller Foodservice, and operational integration into Creed Foodservice is progressing.

• Announced proposed acquisition by OEP Capital Advisors L.P.

Financial highlights

• Revenue grew to £802.7 million from £663.7 million year-over-year.

• Gross profit increased to £183.2 million, with gross margin at 22.8%.

• Adjusted EBITDA reached £53.4 million, up from £45.2 million.

• Profit before tax was £22.4 million, nearly flat year-over-year.

• Basic EPS was 20.1p, down from 23.5p, due to increased share capital.

• Adjusted EPS was 25.9p, down from 30.0p.

Outlook and guidance

• Trading remains in line with management expectations.

• Focus on operational and commercial synergies from Foodservice integration to offset cost headwinds.

• Macroeconomic uncertainty and inflationary pressures, including wage and National Insurance increases, are expected to impact margins.