Bakkavor adjusted operating profits surge in FY24

Prepared food business Bakkavor said on Tuesday that adjusted operating profits had surged in FY24 on the back of improved revenues across all regions.

Bakkavor said FY revenues had grown 4% to £2.29m, while adjusted operating profits shot up 20.5% to £113.6m. Adjusted operating margins expanded 70 basis points to 5.0%.

On a non-adjusted basis, operating profits dropped from £97.1m to £113.6m due to £20.2m in exceptional costs, most of which were related to its shuttering of a UK site.

Earnings per share were up 3.5p year-on-year at 12.3p, while Bakkavor's total dividend payout for the year increased by 10% to 8.0p.

Chief executive Mike Edwards said: "The group delivered another strong performance in 2024, as we continued to execute our strategic plans. We saw volume growth in all regions as we have continued to focus on delivering excellent service, quality and innovation for our customers.

"The momentum we have created and our clear strategy underpins our confidence in delivering further margin improvement in FY25 as we continue on our trajectory to our 6% target."

As of 0815 GMT, Bakkavor shares were up 2.66% at 154.50p.

Reporting by Iain Gilbert at Sharecast.com