Fresh prepared food maker Bakkavor has reported 10.6% growth in like-for-like revenue in its financial year 2022, driven by price in the UK and volume growth in the US.
The group's reported revenue exceeded £2 billion (€2.3 billion) for the first time despite the impact of volumes in China due to COVID-19 restrictions.
Adjusted operating profit declined on a year-on-year basis but remained in line with market expectations.
The company added that it mitigated inflation through pricing and internal measures, which impacted its profits.
The company witnessed market share gains in the UK on the back of its service and product portfolio. Its Christmas trading was also in line with expectations.
Commenting on the company's performance, chief executive Mike Edwards commented, "Despite 2022 being another challenging year, Bakkavor delivered a robust performance and once again demonstrated the strength of our customer relationships and the resilient foundations of our business."
The company foresees significant headwinds through 2023 and has implemented a strategy to protect profits.
It plans to implement a leaner organisational structure, focused regional priorities, and enhanced emphasis on managing cash. It hopes to achieve savings of £15 million in its financial year 2023, and £25 million on an annual basis.
Edwards added, "While market challenges will persist in 2023, the actions we are taking to protect profits, our clear strategy, and our balance sheet strength, allow us to move forward with purpose and confidence, enabling us to deliver on our medium- to long-term ambitions."
© 2023 European Supermarket Magazine – your source for the latest A-Brands news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.