Bakkavor Group PLC - London-based fresh prepared food firm - Says trades in line with management expectations in 13 weeks to June 26. Revenue rose 4.0% year-on-year in first half. Notes second quarter revenue up 13% from the same period a year prior and 16% higher on like-for-like basis. Compared to financial 2019, revenue was up 0.7%, or 1.8% on a like-for-like basis in second quarter.
Says UK sales were impacted by lockdown in first quarter, gradually improving in second quarter as restrictions eased. Overall, UK like-for-like sales increase 12% in quarter compared to 2020, dropping just 1.4% below 2019 levels.
Notes "strong sales momentum" in the US through the first half, with like-for-like sales in the second quarter 49% higher than that period in 2020 and 50% above 2019. Plans to increase capacity to accommodate further US growth.
Sees steady recovery China, where second quarter like-for-like sales rose 41% year-on-year but remained 5.5% lower than that period in 2019. Notes a recovery in mainland demand and a return to growth in Hong Kong after a "challenging" first quarter.
Chief Executive Agust Gudmundsson says: "Looking ahead, industry-wide cost pressures and labour challenges are expected to persist and we will continue to work hard across the group to attract, recruit and retain talent, and with our customers, to mitigate the impact."
Current stock price: 133.86 pence
Year-to-date change: up 65%
By Scarlett Butler; scarlettbutler@alliancenews.com
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Bakkavor (BAKK)