Kitwave revenue up 8% but profit before tax down 17%

Kitwave has reported an 8% increase in revenues to £297 million for the six months ended 30 April 2024. Profit before tax is down from £8.3 million to £6.9 million compared to the same period last year.

Ben Maxted: ‘We expect to be in line with market expectations for the full year ending 31 October 2024.’

Gross profit margin has remained stable at 21.5% (versus 21.6% in the same period last year), while operating margin has dipped from 3.7% to 3.1%.

Ben Maxted, CEO of Kitwave, commented: “The group has made positive progress towards its strategic targets during H1 2024 with a series of important investments that will benefit the group in the long term.

“The continuation of our acquisition strategy saw Wilds and Total Foodservice brought into the group, growing our presence in the foodservice sector in the North. Their integration into the group has gone well, and work streams to further integrate the enlarged northern foodservice operation have commenced.

“The construction of our new foodservice distribution site in the South West is close to completion, which will both add capacity and further efficiencies as we consolidate three existing depots. Ahead of the completion of the new site, WestCountry has successfully migrated onto the group’s ERP system to enable a smooth integration of the businesses.

“Operating profit for H1 2024 is slightly behind the prior year due to investment and lower levels of demand in the group’s foodservice hospitality customer base. This, alongside the benefits of the increased investment in infrastructure and the inclusion of trade from total foodservice in H2 2024, will lead to the company’s annual financial performance having an increased second-half weighting.

“Despite the slight shortfall in operating profit in H1 2024 and the continued wet weather in May and early June, we expect to be in line with market expectations for the full year ending 31 October 2024.”

 

 

Published Date: July 2, 2024

Category: Wholesale Industry News