Bakkavor lifts FY profit guidance after 'strong' Q1

23rd May 2024 09:09

(Sharecast News) - Food group Bakkavor lifted its full-year profit guidance on Thursday as it hailed a "strong" first-quarter performance.

In an update for the 13 weeks to 30 March, the company said group like-for-like revenue rose 3.2% to £543.3m, mainly driven by the UK, which saw 4.1% LFL growth to £458.4m.

Bakkavor said UK volumes strengthened through the quarter, underpinned by improving consumer confidence.

In the US, LFL sales fell 5.8% to £57.7m, in line with expectations "given the region's focus on accelerating profit improvement," the company said. In China, meanwhile, LFL sales jumped 9.8% to £27.2m, returning to more normalised levels.

Bakkavor lifted its full-year adjusted operating profit forecast to between £103m and £108m, from a previous forecast of "in excess of" of £100m.

Chief executive Mike Edwards said: "Last year we executed a dynamic plan to reset the business and I am delighted that the momentum this has created across the group has underpinned our strong Q1 performance.

"All three regions are making excellent progress against the group's strategic priorities of rebuilding margins and reducing leverage and, as a result, we are confident in delivering our increased guidance for 2024."