Bakkavor boosts full-year profits outlook

(Sharecast News) - Convenience food maker Bakkavor Group boosted its full-year profits forecast on Wednesday, following a strong first half. Like-for-like revenues from continuing operations at the FTSE 250 firm improved 1.2% to £1.1bn in the 26 weeks to 28 June, while reported revenues rose 0.9% to £1.1bn. Adjusted operating profits jumped 9.8% to £61.5m

As a result, the business - which has agreed to be taken over by pre-packed sandwich specialist Greencore in a £1.2bn deal - now expects full-year adjusted operating profits from continuing operations to be towards the upper end of guidance, for between £120m and £126m.

Mike Edwards, chief executive, said: "The business is in great shape, with momentum expected to continue in the second half.

"Looking further ahead, we have accelerated the delivery of our medium-term margin target of 6% to the 2026 full-year, one year ahead of plan."

Bakkavor sold its China business in July, and its Hong Kong operations in March, and both have therefore been excluded from the interim results.

Greencore and Bakkavor agreed to join forces earlier this year. The Competition and Markets Authority confirmed this week that it was opening a formal acquisition into the deal, which is set to create a convenience food giant with combined revenues of around £4bn.