Kitwave returns to profit and boosts revenue by over 50%

Kitwave Group increased revenue by 51.8% to £223.3 million and returned to profit in the six months ended 30 April 2022 (H1).

CEO Paul Young (right) and CFO David Brind.

The delivered wholesaler recorded profit after tax at £4.4 million after a loss of £3.4 million in the same period last year, and it also improved its gross margin from 17.9% to 19.8%.

In addition, trading since the period end has been “significantly ahead of expectations”, leading the board to revise its financial expectations upwards for the full year ended 31 October 2022.

Paul Young, chief executive officer of Kitwave, commented: “With the detrimental effects of Covid-19 significantly reduced, the group made great strides operationally and commercially during the period.

“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 amongst 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.”