Solid First Half From Bakkavor Group

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Solid First Half From Bakkavor Group

Solid First Half From Bakkavor Group
September 11
09:16 2020
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Bakkavor Group, the leading provider of fresh prepared food in the UK, has reported group like-for-like revenue down 5.2% to £852.4 million with adjusted operating profit down 32.3% to £28.7 million for the 26-week period ended 27 June 2020. Trading in the UK remained solid despite the extremely challenging market, with a 4.5% decrease in revenue to £754.0 million, while International revenues fell by 10.1% to £98.4 million, reflecting the early impact of COVID-19 in China, offset by encouraging growth in the USA.

Bakkavor has been able to rapidly adapt its business operations in response to short-term changes in demand and has taken decisive mitigating actions to lower its cost base and preserve cash, including strategic restructurings in all regions.

Agust Gunmunsson, chief executive of Bakkavor, comments: “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.

“But more than this, our performance is testament to the hard work and commitment of everyone at Bakkavor. 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 continues to be our foremost priority. I am hugely grateful for their support.”

He continues: “We have taken many difficult yet necessary decisions this year to protect the long-term success of our business. Whilst there will be further challenges ahead, we remain a robust, balanced and well capitalised group and the steps we have already taken to protect our business, combined with the recent improvement in trading, gives us confidence for the future.”

Looking ahead, he is encouraged that the steady recovery in trading seen across the business in June has been maintained into the second half of the year. However, the macroeconomic uncertainty caused by COVID-19, combined with limited clarity as to the terms and implications of the UK’s exit from the EU, means that Bakkavor has to be cautious about the rest of this year and into 2021.

He is confident that Bakkavor remains a robust business with market leading positions in each of the categories in which it operates and, as such, is well-placed to capitalise on the long-term trend for fresh, healthy and convenient food.

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