Kitwave Group plc (AIM: KITW), the delivered wholesale business, is pleased to announce its unaudited interim results for the six months ended 30 April 2025 (“the period” or “H1 2025”).
Revenues were up 26.7% (3.1% like-for-like) to £376.2 million (H1 2024: £297.0 million; FY 2024: £663.7 million).
The retail and wholesale division slightly outperformed expectations (like-for-like revenue +3.1%).
The Creed Foodservice integration is ahead of timetable, with full benefits to be realised over the next two years.
The operational integration of Total Foodservice with Miller Foodservice is on track and expected to be completed by the end of the financial year.
The new South West distribution centre is operational with an associated increase in L4L rent (in the form of IRFS 16 depreciation) and rates of £0.4m for H1 25 and £0.8m full year compared to the prior year.
Kitwave took the decision to incur some additional operational investment in the new South West distribution centre. These costs were higher than expected to maintain service levels as the business transitioned from three separate locations into a single 80,000 sq. c distribution centre and they are expected to continue into H2.
Recent acquisitiobs and investment have significantly increased the scale of the Group’s UK footprint and the addition of Creed has created a fully integrated national delivery network to support long term growth and achieve the optimal and most efficient cost to serve.
Ben Maxted, Chief ExecuAve Officer of Kitwave, commented: “This period has seen record revenue and operating profits for Kitwave, underpinned by our continued strategic transformation and supported by the acquisition of Creed Foodservice, which has proven to be an excellent addition to the Group. Whilst we have navigated some operational changes, particularly the transition to a new, larger depot in the South West and the integration of multiple businesses, we are pleased with the solid progress made and the underlying strength of our Group.
“The acquisition and integration of Creed Foodservice, alongside recent investments in infrastructure, have strengthened our position as a nationwide, delivered foodservice business with a clear and active pipeline of organic growth opportunities. The Creed Foodservice investment has strengthened our management capabilities and advanced the Group’s objective of delivering a more streamlined, scalable platform in the Foodservice marketplace. Our Retail and Wholesale division also performed well, benefitting from underlying consumer demand as the spring weather was favourable.
“As a result of some short-term additional operational investment relating to the new South West depot, the increase in employer National Insurance contributions and the macroeconomic backdrop detrimentally impacting consumer confidence and volumes in the destination leisure sector, the Board now anticipates that the Group’s adjusted operating profit will be below current market expectations.
“The Group has a strong balance sheet with a highly cash generative business model. This is expected to lead to a reduction in absolute debt and continued reduction in leverage that will create capacity to reinvest in service-led growth initiatives. This financial strength provides the flexibility and resilience to continue pursuing our buy-and-build strategy, which we believe remains the right path forward in the current market landscape, albeit currently no acquisitions are expected during the remainder of the financial year.
“As we look ahead, we remain confident in our long-term outlook and our ability to deliver sustained value for all stakeholders. The fundamentals of our business remain strong, our strategy is clear, and we continue to execute with discipline and ambition.”
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