Bakkavor Group PLC

Latest Results (16.10.2025):

Bakkavor Group PLC announced strong financial results for the full year ended 28 December 2024. The company reported a 4.0% increase in revenue to £2,292.7 million and a significant 20.5% rise in adjusted operating profit to £113.6 million. These results surpassed market expectations, reflecting Bakkavor's effective execution of its strategic plans and solid performance across all regions.

Significant Increase in Profitability and Strengthened Balance Sheet

Bakkavor achieved a 5.1% growth in like-for-like revenue, driven by volume increases across all regions and price enhancements. Adjusted operating profit rose by 20.5% to £113.6 million, with the operating profit margin improving by 70 basis points to 5.0%, exceeding market expectations. The company's net debt decreased by £35.8 million, and leverage improved by 0.4x to 1.1x. Return on Invested Capital (ROIC) surged by 260 basis points to 10.1%, underpinned by enhanced profitability.

Excellent Strategic Progress Driving Margin Improvement

Bakkavor made significant strides in both the UK and international markets. In the UK, volume growth outpaced the market, and ongoing efficiency measures led to margin improvements. Internationally, the reshaped US business saw better operational performance and a return to growth, while losses in China were halved through simplification and lean manufacturing initiatives. The sale of the Hong Kong business is on track to complete in April 2025. The implementation of the Bakkavor Operating System has driven strong efficiency across all regions.

Positive Outlook with Continued Margin Enhancement in FY25

The company expects further margin improvements in the fiscal year 2025, continuing its trajectory towards a targeted adjusted operating profit margin of 6% by FY27. Revenue for FY25 is projected to remain broadly in line with FY24, balancing the impact of the Wigan site closure with underlying growth in all three regions. Bakkavor remains confident in achieving its strategic goals, supported by robust trading performance and a clear focus on operational excellence.