The Bakkavor Group has reported a strong rise in revenue for its fiscal first quarter, adding that it remained on track to meet its full-year forecasts.
For the 13 weeks to 26 March 2022, the freshly-prepared food group revenue was up 11.5% to £485.4m, a +11% like-for-like increase on last year, and a 8% LFL rise from 2020.
Revenue in the UK rose by 8.7% to 407.4m, while its China operations recorded a 5.5% uptick to 22.9m (+1.4% LFL basis). However, the results were driven by a 40.9% jump to 55.1m in the US (+37.4% LFL).
Bakkavor said its US performance was “driven by continued volume growth with strategic customers, particularly in fresh meals”. In the UK, revenue was boosted by price and volume growth. However, the China results were hurt by the continuing Covid-related lockdowns in that country.
CEO Agust Gudmundsson noted: “The group has had a positive start to the year; successful price recovery has helped offset the impact of inflation in the period, and our teams have worked hard to deliver excellent service levels for our customers.”
He warned that volumes in the UK are likely to be affected by more price hikes, while the China unit’s “near-term outlook remains uncertain”. However, he forecast “strong volume growth” in the US, adding that the group’s overall “category breadth and strong pipeline of innovation mean we are well placed to underpin growth”.
