Bakkavor Group PLC, a leading international provider of fresh prepared food, has released its full year 2023 trading update. The company's reported revenue for the year was £2,203.8 million, with like-for-like revenue growth of 5.3%. The UK market saw a 3.9% revenue growth, while the US market experienced a 10.1% decline, and the China market showed a significant 20.7% growth.
The company's 2023 profits, net debt, and leverage are all expected to surpass market expectations. The strong performance was driven by various factors, including price and volume recovery in China, market share gains in the UK, and a return to profitability in the US in the second half of the year. Bakkavor's Group-wide plan to protect profitability, enacted in November 2022, delivered synergies and efficiencies ahead of expectations.
Looking ahead to 2024, Bakkavor anticipates slightly higher revenue than 2023, with a focus on increased profitability despite subdued volumes in the UK and reshaping of the US business. The company aims to continue reducing leverage while sustaining working capital improvements and driving internal enhancements.
In a notable development, Baupost, a significant shareholder, has sold its entire stake to LongRange Capital. Bob Berlin, who leads LongRange, will join the Board, bringing a wealth of experience in consumer goods, food, technology, and financial sectors.
Mike Edwards, CEO of Bakkavor, expressed confidence in the company's ability to deliver further financial improvements in 2024, despite the challenges posed by inflation. He also extended a warm welcome to Bob Berlin, emphasizing the latter's valuable experience and understanding of the business and markets.
Bakkavor Group PLC operates in the UK, US, and China, with over 18,500 employees across 44 sites. The company leverages consumer insight and scale to provide innovative, high-quality fresh prepared food, offering choice, convenience, and freshness to consumers in its key markets.