Boost in revenue for Kitwave as part of strong results

Kitwave Group has reported a 51.8% boost in its revenue for the six months ending 30 April 2022.

The wholesale group’s figures – which are unaudited interim results – represent a return to pre-pandemic levels, with particularly strong demand in the latter part of the period.

There were encouraging numbers across the board, with the consolidated gross margin improving to 19.8%, profit after tax recovering to £4.4 million.

A strong cash generation from operating activities of £17.1 million was also reported, leading to pre-tax operational cash conversions of 166%.

The results were posted alongside some key developments in the business, with the acquisition of MJ Baker Foodservice in February and the opening of a new 60,000 square foot distribution centre in Wakefield to aid the enhancement of the group’s on-trade business.

“With the detrimental effects of COVID-19 significantly reduced, the group made great strides operationally and commercially during the period,” said Chief Executive Paul Young.

“Trading recovered at a quicker pace from the pandemic than we had anticipated, notably within vending, ambient and foodservice. It should be noted that this reporting period includes Christmas 2021, a period that was still overshadowed by high rates of positive COVID-19 cases and hesitancy to socialise among consumers.

“The outlook for the UK economy is dominated by cost-of-living issues which provide an element of uncertainty in relation to end consumer demand for the group’s products. While the board is cognisant that these issues could impact trading in future periods, given the better than expected performance in H1 and the strong start to H2, we expect to be significantly ahead of expectations for the current year.”

On the back of the results, the Kitwave board has declared an interim dividend of 2.50 pence per share for the financial year ending 31 October 2022.

Kitwave Group MJ Baker Foodservice results wholesaler