Highlights

  • In H1 FY24, Kitwave Group's revenue rose 8% to GBP 297.0 million, with a steady gross margin of 21.5%
  • In October 2024, the group opened a new 80,000 sq. ft. food service distribution center
  • The board has announced an interim dividend of GBX 3.85 per share for the six months ended 30 April 2024

Kitwave Group PLC (LSE:KITW) operates in the wholesale sector, offering deposit and delivery services across the UK. Kitwave's business is split into three segments: Frozen and Chilled, Ambient, and Foodservice.

In the first half of FY24 (H1FY24), Kitwave has shown healthy financial and operational growth and has completed three acquisitions, bringing the total to 15 since 2011.

Financial Performance of H1FY24

In H1FY24, Kitwave Group reported an 8% increase in revenue, reaching GBP 297.0 million. The gross margin remained steady at 21.5%. Adjusted EBITDA was GBP 15.9 million, and operating profit was GBP 10.8 million. Cash generation improved, with an operational cash conversion of 93%. In terms of operations, the company integrated two acquisitions, Wilds and Total Foodservice, into its Foodservice division.

Further, the board has announced an increased interim dividend of GBX 3.85 per share. It relates to the period of six months ending 30 April 2024. This is up from GBX 3.75 per share in H12023.

Recent Business Update

The group opened a new 80,000 sq. ft. food service distribution center in October 2024.  Despite a GBP 2 million rise in operating costs due to UK budget changes, the board expects to offset this impact and plans to continue its growth strategy.

Company Outlook

Kitwave believes it is well-positioned for continued growth in the UK wholesale market. The company focuses on organic growth and strategic acquisitions. The new Southwest distribution center, scheduled to finish in Q3 2024, is expected to improve delivery capabilities and operational efficiencies. Despite macroeconomic challenges, Kitwave expects to meet full-year market expectations. The company expects to see stronger performance inH2 2024.

Top 10 Shareholders

The top 10 shareholders of Kitwave own approximately 47.21% of the total shares. Columbia Threadneedle Investments (UK) holds the largest stake with around 11.97%. Liontrust Investment Partners LLP follows with about 9.65%.

Price Information

The stock price of KITW has dropped by approximately 3.65% in the past month and by around 10.98% over the last six months. The stock's 52-week low is GBX 242.77, while its 52-week high is GBX 409.50. As of 09 December 2024, the stock closed at GBX 318.50, which is below the average of its 52-week high and low.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 09 December 2024. The reference data in this report has been partly sourced from EODHD/Others.