Bakkavor chugs ahead with revenue growth despite China curbs
Fresh prepared food maker Bakkavor has chugged ahead with revenue growth, despite local Covid-19 restrictions in China significantly hitting the business.
The London-headquartered producer reported a revenue of £485.4m in the three months to 26 March, up 11 per cent in comparison with the same period last year.
China’s so-called ‘zero-Covid’ stance on the virus has spelled supply chain issues across the globe, with its exports grinding to halt for most of the year.
While sales in China are “marginally” in the green, Bakkavor revealed it is making traction in the US – with like-for-like growth surging more than a third in the first quarter of the year.
Bakkavor has hailed a “successful price recovery”, the company said in its latest trading update today, having had a “strict” focus on cost control amid runaway inflation and the rising cost of living for consumers.
Revenue in the UK alone jumped nearly nine per cent in the period, as it marked nearly a year of operating its new brand The Delicious Dessert Company, which launched in April 2021.
“We expect the trading environment to remain challenging and for input costs to continue to escalate. However, we remain well placed to navigate the ongoing headwinds as our price recovery to date, combined with our continued drive for efficiency improvements and disciplined approach to cost control will help to mitigate the impact,” CEO Agust Gudmundsson said in a statement.
“Despite further recent increasing pressure on household budgets, we are highly focused on driving volumes across our categories and further strengthening our customer relationships by bringing innovation to our product ranges. We remain confident in our medium-term growth opportunity, both in the UK and internationally.”