Kitwave Group (KITW) Trading update summary

Trading performance and revenue

• Revenue for the three months ended 31 January 2026 was in line with the same period in the previous year.

• Lower-than-expected demand in the hospitality sector led to an unfavorable revenue mix and negatively impacted gross profit margin.

Profitability and margin pressures

• Adjusted operating profit for the period was materially behind Board expectations.

• Profitability was further affected by continued investment in the South West depot and ongoing overhead inflation, including higher NIC and National Minimum Wage costs.

• Margin pressure is expected to persist throughout the remainder of the financial year ending 31 December 2026.

Outlook and strategic context

• The Board remains cautious on the outlook for the rest of the financial year.

• The three-month period typically represents a small proportion of total annual profit.

• Growth has historically been achieved through organic expansion and acquisitions in the fragmented UK wholesale market.