The Kitwave Group has reported that it is on course to trade in line with current market expectations for the full year ending 31 October 2024, with operating profit performance during the period expected to be slightly behind the prior year.
It has put this down to lower levels of demand in the hospitality customer base of the higher margin foodservice division, due what it calls an historically high and sustained period of wet weather over recent months.
Kitwave also confirmed that the integration of both Wilds Of Oldham (purchased in November 2023) and Total Foodservice Solutions Group (acquired March this year) is going well.
Read more: Kitwave Group acquires Total Foodservice Solutions
Ben Maxted, chief executive officer of Kitwave, commented: “I am pleased to report that the Group has continued to make progress towards its operational and financial targets and that we remain confident of achieving a positive outcome for the full-year results.
“The Group has an excellent platform for growth in the form of organic developments and incorporating the full benefits from its strategic acquisitions. The most recent acquisitions demonstrate that we continue to capitalise on the opportunities available to us in a fragmented delivered wholesale market. Kitwave is well positioned to continue delivering value to its customers and shareholders and we look forward to updating the market on further progress in due course.”
Read more: Kitwave planning further foodservice M&A activity after group revenue exceeds £600m mark
Furthermore, in a recent interview with Better wholesaling explained that while foodservice makes up 30% of group revenues it’s already at 45% of group adjusted operation profit because of the higher margin structures. “Foodservice fits into our culture and story of being a service-led business. Strategically our stated M&A aim is towards foodservice moving forward, so you can see that becoming a more dominant part of the business in the future ahead of chilled, frozen and ambient.”
