Fresh prepared food maker Bakkavor has said it is well-positioned to mitigate inflationary headwinds on the back of continued price recovery with customers, strict cost control, and productivity improvements.
The company noted that it saw ‘encouraging’ sales volumes in early 2022 and is confident of its revenue momentum for the rest of the year.
The scale, experience, category leadership and breadth of its portfolio in the UK will help the company to continue to progress, it noted.
The company’s like-for-like revenue for the financial year increased by 6.2% compared with 2020, to £1.86 billion (€2.21 billion).
Reported group revenue grew 4.4% year-on-year in this period, to £1.87 billion (€2.23 billion).
The company’s adjusted operating profit exceeded market expectations, amounting to £102.0 million (€121.4 million), up 22.0% year-on-year.
Adjusted operating margin increased 70 bps during the financial year despite inflationary headwinds and labour challenges, Bakkavor added.
'Meaningful Financial And Strategic Progress'
Commenting on the company’s performance, chief executive Agust Gudmundsson, said, “In 2021 we achieved meaningful financial and strategic progress against unprecedented industry challenges. We have continued to leverage our scale, category leadership, and strict focus on efficiency and cost control to emerge in a position of strength.
“While we expect the significant inflationary pressures to persist, we have demonstrated our ability over the past 36 years to navigate such headwinds. I believe we are well-positioned to mitigate these challenges, giving us confidence in delivering on our expectations for the full year.”
Bakkavor’s US division saw like-for-like revenue growth of 31.8%, and it hopes to achieve further growth through its latest investments.
The food company saw a steady top-line recovery in China, where it is focussing on new customers by entering new channels.
The company also made progress on its 2040 net-zero commitment and the net carbon emissions of the group reduced by 4.1% in 2021.