Bakkavor Group FY24 Profits See Notable Boost in Results

Bakkavoor Group has announced its FY24 profit growth by their official press release. The group’s latest report shows a significant improvement in profit margins and a stronger balance sheet. As the leading supplier of fresh food in the UK, it is forecasting further strategic gains over the next few years.

Key Informations of Bakkavor Financial F24 Results

Revenue: £2.29 billion, 4% increase YoY.

• Like-For-Like Revenue: £2.30 billion, 5.1% increase YoY.
• Adjusted Operating Profit: Increased by 20.5% to £113.6 million.
• Operating Profit: £93.4 million, a nominal decline attributable to an exceptional UK site closure.
• Earnings Per Share (EPS): Adjusted EPS at 12.3p up by 3.5p, basic EPS also increased to 9.6p.
• Free Cash Flow: £88.7 million which slightly decreased due to investments in corporate strategy.
• Net Debt: Decreased by £35.8 million resulting in a lower debt leverage ratio of 1.1x.
• Return On Invested Capital (ROIC): Increased by 2.6% to 10.1%.
• Dividend: Increment of 10% to 8.00p minor.

Increase of Market Share Ostensively Impacted Operational Profitability

1. UK Market: Marked improvement in operating profitability relative to the rest of the sector.
2. US Operations: Noted growth with increased operational efficiency and profitability.
3. China Operations: Losses decreased by half owing to the streamlining and lean manufacturing processes.
4. Efficiency Drive: Savings and higher levels of operational efficiency were achieved through The Bakkavor Operating System.
5. Trust & ESG Progress: Strengthened corporate social responsibility and sustainability by improving three non-financial key performance indicators.

Outlook for 2025 and Beyond

• Revenue Stability: Forecasted to be stable in FY25, as the impacts of Wigan site closure will be more than compensated by growth in all regions.
• Profitability Goals: Planning to achieve an adjusted operating profit margin of 6% in FY27.
• Continued Investment: Focused on sustaining efficiency improvements while further increasing product and service quality.

CEO Mike Edwards noted the strong momentum Bakkavor has, attributing this to the workforce and strategic measures that the company put in place.

Kazi Motaleb

Kazi Abdul Motaleb is an SEO specialist and a working journalist. For nearly five years, he has worked in the supermarket, fresh produce, private label, and food industries as a journalist. In addition to journalism, he is an expert in search engine optimization. He started working at Global Supermarket News in March 2024 as a journalist and SEO specialist.

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