Bakkavor’s (BAKK) shares have rebounded more than 80% to 153.5p year-to-date, investors regaining their appetite for the fresh prepared food provider amid evidence CEO Mike Edwards’ reset is paying off, an improving outlook with margin-crimping inflation moderating and with debt on the way down.

In March Bakkavor, which supplies UK and US grocers and food brands in China with everything from meals, salads and sandwiches to desserts, pizzas and bread, raised its 2024 outlook after baking up better-than-expected profits for the year to December 2023 driven by price hikes, juicy cost savings and a second half return to profitability in the US.

And following a tasty first quarter to 30 March 2024 in which UK volumes returned to growth, US profits improvement continued and like-for-like growth returned to more normalised levels in China, Bakkavor upgraded full year adjusted operating profit guidance from ‘in excess of £100 million’ to a new £103 million to £108 million range.

‘All three regions are making excellent progress against the group’s strategic priorities of rebuilding margins and reducing leverage and, as a result, we are confident in delivering our increased guidance for 2024,’ enthused Edwards.

In May, the FTSE 250 firm acquired Moorish, a supplier of houmous to UK retailers which complements its existing dips business and ‘provides an attractive opportunity to extend the brand into a broader range of Mediterranean products’. 

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