Bakkavor has declared itself in a ‘position of financial strength’ after registering a ‘robust trading performance’ in its half-year results despite inflationary challenges.
The sandwich, pizza and dessert manufacturer said its sales momentum was strong, with revenue increasing 10.3% to £1bn in the 26 weeks to 25 June, with a like-for-like rise of 9.2%.
In the UK, sales were up 7.9% year on year, with the rise primarily led by price increases. The company claimed its volume growth had outperformed the fresh prepared food (FPF) market, and that ‘successfully executed pricing and cost actions, along with productivity improvements’, had mitigated ‘significant levels of inflation’ and largely protected profitability in the UK.
The company added that sales momentum had continued through July and August, with full-year revenue expected to be in line with the upper end of market expectations.
“In the UK, our broad portfolio of products across categories and competitive price points positions us well to cater to consumers changing needs,” a Bakkavor spokesperson said. “We are confident of ongoing gains in our share of the FPF market, underpinned by a strong pipeline of launches.”
The company also reported that it had made ‘meaningful progress’ with its Trusted Partner ESG strategy and would focus on building data to measure performance effectively and develop its roadmap to reach net zero by 2040.
“Against a backdrop of macro uncertainties and inflationary headwinds, our operational delivery has been strong, and we have continued to deliver for our customers,” said Agust Gudmundsson, Bakkavor CEO. “This, once again, demonstrates the continuing resilience of the group, underpinned by the strength of our customer partnerships, supply chain management, scale and category leadership.
“We remain confident in our ability to deliver a full-year performance in line with the range of market expectations as we continue to focus on managing costs, price recovery, and driving demand in our categories,” he added. “The current geo-political uncertainty, however, will result in significant levels of inflation and consumer spending headwinds persisting through 2023.”
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