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(Alliance News) - Salad and sandwich maker Bakkavor Group PLC on Friday said its China operations suffered towards the end of January following the coronavirus outbreak, which subsequently resulted in a "sharp reduction" in sales volumes in the UK and US in the last week of March and into April.
"Since that time, sales volumes in all three regions have stabilised and are 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," the London-based convenience food company said.
Shares in Bakkavor were down 1.9% at 77.30 pence each in London on Friday morning.
In the UK, like-for-like revenue fell by 19% in April and 13% in May due to "historically" low levels of shopping visits by consumers.
"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. 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," Bakkavor said.
In the US, the FTSE 250 company saw a more limited financial impact of Covid-19 due to capacity adjustments made to adapt lower demand, it said, and remains "encouraged" by recent performance of its sites in the US.
Bakkavor continues to support its food service customers in China who have reopened their restaurants and stories, it said.
Bakkavor noted it continues to operate with significant headroom against available lending facilities of GBP562.5 million - so has not required any government-supported debt funding.
By Tapan Panchal; tapanpanchal@alliancenews.com
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