Bakkavor Group PLC has released its audited results for the 52-week period ended 30 December 2023, showcasing a robust financial performance and a positive outlook for the future. The company reported a 3.0% increase in group revenue, reaching £2,203.8 million, with like-for-like revenue up 5.3%. Adjusted operating profit saw a 5.5% increase to £94.3 million, surpassing market expectations. Additionally, free cash flow surged to £103.2 million, enabling a reduction in debt and a 5% increase in the total dividend per share.
The company attributed its strong performance to the successful execution of its three-point plan, which delivered synergies and efficiencies ahead of initial expectations, resulting in £17 million savings in FY23. Bakkavor also renewed its regional priorities, focusing on market share growth in the UK, profitability in the US, and volume recovery in China. Furthermore, the company emphasized a disciplined approach to managing cash, leading to a reduction in net debt.
Bakkavor highlighted its continued progress in Environmental, Social, and Governance (ESG) initiatives, with advancements in food waste and carbon emissions reduction, as well as the launch of the 'Better Behaviours, Better Bakkavor' program to enhance colleague engagement. The company expressed confidence in delivering 2024 results ahead of market expectations, with positive momentum across all regions and a strong start to the year.
Mike Edwards, CEO of Bakkavor Group PLC, expressed pride in the company's performance and thanked the team for their commitment to driving change. He emphasized the company's confidence in delivering 2024 results at least in line with the upper end of market expectations and reiterated the focus on colleagues, customers, and community support, particularly the King's Coronation Food Project aimed at reducing food poverty. The full report is available on the company's website, and a presentation to analysts can be accessed through the Investor section of the Group's website.