Bakkavor Share News (BAKK)

(Sharecast News) - Fresh food group Bakkavor reported sharp falls in UK like-for-like revenues in April and May as the coronavirus lockdown took hold.
The company, which operates in the UK, US and China, on Friday said sales volumes in all three regions had stabilised and were showing early signs of recovery, with group like-for-like revenue for the five months to the end of May down around 5% compared to the same period last year.

"Although there remains significant uncertainty around trading levels for the second half of the year, we are seeing overall demand for fresh, healthy and convenient food steadily increase, albeit from a lower base," the company said.

UK like-for-like revenues were down 19% in April and 13% in May in a "volatile" market as shopping visits reached historically low levels and consumer shopping habits continue to adjust and evolve, Bakkavor said.

"Performance across our meals, pizza & bread, and desserts categories has steadily improved, however our salads category and 'food to go' products continue to be impacted, with significantly lower volumes year on year."

Bakkavor said it still had significant financial headroom against available facilities of £562.5m and had not accessed any government support schemes.

The company on Monday warned hundreds of jobs at one of its UK factories were under threat because of the coronavirus pandemic.

The firm said it was "reviewing and reducing functional support roles" and the change affected about 500 people.

"We can confirm that we are entering into several consultations with employees at our Spalding site where we have two salads factories, two meals factories and a distribution centre."

"Over the past 12 months the salads businesses at Spalding (Factory 1 and the Deli) have come under increasing pressure due to the impact of a business loss at the beginning of 2020 and more recently the impact of the Covid-19 pandemic crisis."