Bakkavor sees 2024 profits at upper end as China markets rebound

5th Mar 2024 07:37

(Sharecast News) - Prepared food supplier Bakkavor said it expected 2024 adjusted operating profit to be at least in line with upper end of market expectations after posting a strong rise in earnings last year as its markets in China recovered from Covid-19 restrictions.

Pre-tax profits surged to £70.3m last year from £18.1m a year earlier, with group revenue up 3% to £2.2bn.

"The consumer environment is improving but still remains challenging, as such, we are planning for subdued volumes leading to revenue growth of 1% to 2% in 2024. We are not, however, reliant on volumes to deliver an improvement this year and trading in 2024 has started well," the company said on Tuesday.

"We have seen improved performance from our China business as the consumer environment continued to stabilise following the relaxation of Covid-related restrictions in December 2022. Without the volatility created by lockdowns we have been able to drive margin improvement through better operational efficiency and more stable production rates."

Reporting by Frank Prenesti for Sharecast.com