Listed wholesaler Kitwave has hailed significant revenue and profit growth in its latest set of interim results.
The North Shields-based firm told investors that unaudited revenues in the six months to the end of April had climbed 23% to £275m compared with the same period last year, while unaudited operating profit was boosted from £6.7m to £10.2m. Price inflation was said to have contributed to the figures along with increased volumes.
Kitwave pointed to its £29.7m acquisition of Falmouth-based fresh food distributor WestCountry - its 12th such purchase - as a key driver of growth. That move followed its takeover of Devon-based MJ Baker last year.
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Despite cost-of-living concerns within the economy, Kitwave said its customer numbers and volumes had not been significantly impacted as continued demand for "affordable socialising", including eating out, and sales to care homes and educational establishments had continued to drive volumes.
In its update to the London Stock Exchange, the firm said wholesale sector volumes are normally weighted towards the second half of the year and that it expected the momentum to continue across the next six months with full-year results thought to be ahead of expectations.
Paul Young, chief executive officer of Kitwave, said: "We are pleased to report continued strong progress across the group in the six months ended 30 April 2023. With trading in the wholesale sector typically weighted towards the second half of the year, we are confident that this positive momentum will continue throughout 2023, and results for the full financial year will be ahead of market expectations that were established at the start of the financial year.
"A significant highlight during the period was the group's successful acquisition and integration of WestCountry into our Foodservice division, where we are now able to deliver high-quality fresh produce throughout the South West. This acquisition demonstrates the strong results that can be achieved when taking advantage of the considerable opportunities available in the UK's fragmented wholesale market.
"We believe that our unwavering focus on operational efficiency, strategic investments, and customer satisfaction, means we are well placed to drive sustainable growth, both organically and through acquisitions to deliver value for the group and its shareholders."
