Bakkavor Group PLC on Thursday said it has upgraded the full-year outlook after a ‘strong first half’, and that Chief Financial Officer Ben Waldron will be leaving next year.

The London-based ‘fresh prepared’ food manufacturer said that in the first six months of this year, pretax profit jumped 39% to £45.2 million from £32.6 million the year before.

Basic earnings per share also rose 39% to 6.1 pence from 4.4p, while diluted EPS rose to 6.0p from 4.3p.

Operating profit increased 27% to £58.8 million from £46.3 million. Adjusted operating profit - which excludes restructuring costs, asset impairments and one-off charges - also rose 27% to £55.0 million, with a 4.9% margin, from £43.4 million with a 4.0% margin.

Revenue increased 2.8% to £1.12 billion from £1.09 billion, including currency impacts and revenue from Bakkavor (Taicang) Baking Co Ltd, its Chinese bakery business which Jiangsu Dingweitai Food Co Ltd acquired in April. Like-for-like revenue rose 3.8% to £1.12 billion from £1.08 billion ‘with volume improving and ongoing inflation largely mitigated’, Bakkavor said.

‘This has been a strong first half for the group, with momentum from our 2023 restructuring activity continuing to support our performance in 2024,’ commented Chief Executive Officer Mike Edwards.

Bakkavor declared an interim dividend of 3.20p for the half year, up 10% against the prior year’s 2.91p per share. The firm said this reflected its ‘strong performance and upgraded outlook’.

The company said it now expects between £108 million to £112 million in adjusted operating profit for 2024, ‘ahead of market expectations’. Bakkavor’s compiled consensus puts the target at £106.2 million, or between £103.7 million and £107.7 million.

In the longer term, Bakkavor aims to ‘rebuild’ its adjusted operating profit margin to 6%.

Bakkavor also said second-half trading ‘has started well with strengthening volumes increasing FY24 revenue expectations’.

‘We are excited about building a stronger Bakkavor as the trading environment improves and...we have good line of sight to deliver further margin improvement as we move into 2025 and beyond,’ CEO Edwards said.

Also on Thursday, Bakkavor announced the upcoming resignation of Chief Financial Officer & Asia CEO Ben Waldron. He has spent four years as CFO and 14 years at the company, including as CEO of its US business during the Covid-19 pandemic.

Waldron, who is emigrating to Australia, will formally step down on October 31 but remain at Bakkavor to ‘ensure a smooth handover’ until the end of April 2025.

UK Finance Director Lee Miley, who has worked at Bakkavor since 1998, will replace Waldron as CFO with effect from November 1.

CEO Edwards noted Waldron’s ‘lead role in step-changing [Bakkavor’s] financial performance’, and said Miley ‘has a wealth of experience both of our industry and our business...his appointment will ensure we maintain the momentum we have recently established’.

Shares in Bakkavor were up 3.6% at 159.50p each on Thursday morning in London.

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