Bakkavor Group's 2024 Earnings: EPS Surpasses Expectations
Thursday, Mar 6, 2025 12:42 am ET
1min read Bakkavor Group plc (LON:BAKK), the leading international provider of fresh prepared food, has reported its full year 2024 results, with earnings per share (EPS) surpassing analyst estimates by 12%. The company's revenue was in line with analyst estimates, reflecting a steady performance across its operations.
Key Financial Results
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* Revenue: UK£2.29b (up 4.0% from FY 2023)
* Net income: UK£55.7m (up 3.3% from FY 2023)
* Profit margin: 2.4% (in line with FY 2023)
* EPS: UK£0.096 (up from UK£0.094 in FY 2023)
Bakkavor Group's revenue growth of 4.0% in 2024 was slightly lower than the forecasted growth rate of 4.1% p.a. for the UK food industry over the next three years. This difference can be attributed to regional performance variations, market conditions, and potential currency fluctuations. The company's UK segment grew by 5.2%, while the US segment grew by only 2.0%, and the China segment actually declined by 4.3% (Source: Trading Update, Jan 16, 2025).
Strategic Initiatives for Margin Improvement
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Bakkavor Group has implemented several strategic initiatives to improve its profit margin and achieve its target of 6% by 2027. These initiatives include operational excellence, growth in high-margin categories, expansion into high-growth markets, and investment in people and technology. The company has seen progress in these areas, with a 70-basis point improvement in margin, reaching 5% in 2024 (Source: Earnings Call, Mar 4, 2025).
Operational Efficiencies and Financial Stability
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Bakkavor Group has successfully reduced its leverage to 1.1x and improved its return on invested capital (ROIC) to 10.1% in 2024. These improvements can be attributed to the company's strategic plans and operational improvements, particularly in its U.S. operations. The U.S. operations have shown marked improvement, with EBITDA margins now ahead of the UK, indicating successful operational efficiencies (Source: Earnings Call, Mar 4, 2025).
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