Bakkavor Sees 4.6% Decline In Group Revenue In H1
Prepared food manufacturer Bakkavor Group has posted a 4.6% year-on-year decline in group revenue to £880.5 million (€952.59 million) in the first half of its financial year ended 27 June 2020.
Like-for-like revenue for the period dropped 5.2% to £852.4 million (€922.19 million) from £899.2 million (€972.82 million) in the same period last year.
In the UK, the company’s like-for-like group revenue dropped 4.5% to £754.0 million (€815.73 million) amid solid trading in an extremely challenging market due to the pandemic.
The company’s international revenues were down 10.1% to £98.4 million (€106.46 million), reflecting the early impact of COVID-19 in China, offset by encouraging growth in the USA.
Agust Gudmundsson, Bakkavor CEO, commented, “The first half of this year has been extremely challenging, but I am pleased to report that the Group has produced a solid performance given the COVID-19 issues the business has faced.
“The scale and strength of our operations, coupled with our ability to react at speed, has proved a clear advantage to our customers during this period.
The company’s adjusted operating profit amounted to £28.7 million (€31.05 million), down 32.3% year-on-year from £42.4 million (€45.87 million) in 2019.
Profit before tax amounted to £6.8 million (€7.36 million), down from £19.5 million (€21.10 million) in the first half of last year.
Bakkavor described its business as ‘robust’ and said it is ‘well-placed to capitalise on the long-term trend for fresh, healthy and convenient food.’
The company witnessed a steady recovery in trading across its business in June and said it was encouraging to see the trend continue into the second half of the year.
However, it will exercise caution due to the macroeconomic uncertainty caused by COVID-19 and limited clarity on the implications of the UK’s exit from the EU.
Gudmundsson added, “In difficult circumstances, we have worked tirelessly to minimise disruption and continue to deliver for our customers.
“We are fortunate to have such dedicated colleagues and their health, safety and wellbeing continue to be our foremost priority. I am hugely grateful for their support.”