Prepared food provider Bakkavor reported a 6.2% improvement in like-for-like revenue in its full-year results on Tuesday, taking it above pre-pandemic levels in 2019, to £1.89bn.
The London-listed firm said group reported revenue was 4.4% higher at £1.87bn, while adjusted operating profit was £102m, up 22% and ahead of market expectations.
Basic earnings per share rose 3.9p to reach 9.8p for the 52 weeks ended 25 December, while free cash flow rose £51.1m to £91.2m.
The company said its leverage, at 1.9x, was within its medium-term target range and delivered six months ahead of its previous guidance.
Its dividend per share was 10% higher than the pre-Covid comparator in 2019, with the board proposing a final dividend of 3.96p per ordinary share.
Looking ahead, Bakkavor described sales volumes in early 2022 as “encouraging”, giving it confidence in the continuation of its revenue momentum through the year.
The group said it was “committed” to mitigating the impact of significant inflationary headwinds through continued price recovery with customers, strict cost control and productivity improvements.
It also said it was “confident” in delivering 2022 in line with market expectations, given its established teams, commercial philosophy and “dynamic ways of working”.
Bakkavor said its strong cash generation and strengthened balance sheet provided it with flexibility for targeted investment, to deliver further efficiencies and take advantage of medium-term growth opportunities.
“In 2021 we achieved meaningful financial and strategic progress against unprecedented industry challenges,” said chief executive officer Agust Gudmundsson.
“We have continued to leverage our scale, category leadership, and strict focus on efficiency and cost control to emerge in a position of strength.
“Our outperformance, and the support we have given to our customers, suppliers and communities, would not have been possible without the exceptional efforts of all of our colleagues, for which I am incredibly proud.”
Gudmundsson said that, while Bakkavor expected the “significant inflationary pressures” to persist, it had demonstrated our ability over its 36-year history to navigate the headwinds.
“I believe we are well-positioned to mitigate these challenges, giving us confidence in delivering on our expectations for the full year.”
At 0923 GMT, shares in Bakkavor Group were up 2.31% at 111.31p.
