TIDMBAKK
RNS Number : 0886B
Bakkavor Group PLC
31 May 2023
31 May 2023
Q1 2023 trading update
Encouraging Q1 performance; improving outlook for FY23
Bakkavor Group plc (the "Company") and its subsidiaries
("Bakkavor" or "the Group"), the leading international provider of
fresh prepared food ("FPF"), today updates on trading for the 13
weeks to 1 April 2023 ("Q1 2023").
Reported Like-for-like
GBP million revenue Growth (1) ('LFL') revenue LFL growth
------------ -------- ------ -------------------- ----------
Group 529.3 9.0% 522.6 7.6%
UK 440.3 8.1% 440.3 8.1%
US 61.2 11.1% 55.4 0.4%
China 27.8 21.4% 26.9 17.1%
------------ -------- ------ -------------------- ----------
Encouraging Q1 trading performance in-line with expectations
-- LFL revenue up 7.6%, driven by price as well as volume recovery in China
-- UK: Continued to win market share, driven by strong service and net business gains
-- US: Good underlying volume and price growth offset by the loss of volume from a customer
-- China: Good revenue momentum reflects positive volume recovery post-Covid
-- Continued to largely mitigate ongoing inflationary pressures
through pricing, value optimisation, operational efficiency
improvements and cost control actions
-- Restructuring plans on track; new leadership team embedded,
synergies materialising following two UK site closures and the
alignment of our UK business to two sectors
Improving outlook for FY23
-- UK: Further share gains, strong operational performance and
price recovery expected to offset subdued underlying volumes
-- US: Renewed focus on profitability is starting to deliver in line with our expectations
-- China: Volume momentum is expected to continue to build
steadily, supported by diversification into retail
-- Accelerated delivery of restructuring plans now expected to
result in GBP17m of savings in FY23, ahead of previous guidance
-- With momentum expected to continue in all three regions,
Group adjusted operating profit expected to be at the upper end of
the range of market expectations(2)
Mike Edwards, CEO, commented:
"The Group has made an encouraging start to trading in 2023 and,
with momentum expected to continue in all regions, our outlook for
FY23 is now at the upper end of market expectations.
"There is no doubt that the changes we have made as part of our
restructuring plans are underpinning performance. I would like to
thank our teams for embracing and embedding these changes so
quickly.
"The fundamentals of our business remain strong, as we continue
to win market share, demonstrate strong operational delivery and
maintain a robust balance sheet. We are confident of making further
progress through the remainder of this year and into 2024."
1. LFL revenue is revenue from continuing operations adjusted
for the revenue generated from businesses closed or sold in the
current and prior year, revenue generated from businesses acquired
in the current and prior period, and the effect of foreign currency
movements.
2. Based on company compiled consensus ("Consensus") which
includes; Citi, Goodbody, HSBC, Investec, Kepler, Numis and Peel
Hunt, Adjusted operating profit Consensus for 2023 of GBP82.9m,
with a range of GBP80.0m to GBP85.0m.
ENQUIRIES
Institutional investors and analysts:
Ben Waldron, Chief Financial Officer
Emily Daw, Head of Investor Relations +44(0)20 7908 6114
Financial media: bakkavor@mhpgroup.com
Katie Hunt, MHP +44(0)20 3128 8794
Rachel Farrington, MHP +44(0)20 3128 8613
Oliver Hughes, MHP +44(0)20 3128 8622
About Bakkavor
We are the leading provider of fresh prepared food in the UK,
and our presence in the US and China positions the Group well in
these, high-growth markets. We leverage our consumer insight and
scale to provide innovative food that offers quality, choice,
convenience, and freshness. Around 18,500 colleagues operate from
44 sites across our three markets supplying a portfolio of over
2,900 products across meals, pizza & bread, salads and desserts
to leading grocery retailers in the UK and US, and international
food brands in China.
LEI number: 213800COL7AD54YU9949
Disclaimer - forward-looking statements
This statement includes forward-looking statements. By their
nature, forward-looking statements involve risk, uncertainty and
other factors, which may cause the actual results and developments
of the Group to differ materially from any results and developments
expressed or implied by such forward-looking statements. You should
not place undue reliance on any forward-looking statements. These
forward-looking statements are made as of the date of this
statement. The Group is under no obligation to publicly update or
review these forward-looking statements other than as required by
law.
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END
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