Wholesaler Kitwave Group says its 2023 results are set to be ahead of expectations, having enjoyed strong trading through the first half of the year.
The Tyneside-based firm, which specialises in supplying more than 42,000 independent retailers through 29 UK depots, told investors that seasonal trading means the second half of the year is often stronger and it now anticipates full year results to be "slightly" ahead of market expectations. Kitwave acknowledged headwinds, including inflation, but said that it was well-placed to counter them.
The group's £29.7m acquisition of Falmouth-based Westcountry Food Holdings Limited was said to have been successful, and performing to management expectations. The December move was intended to move Kitwave into the South West market, giving it access to depots in St Austell and Newton Abbot.
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In February Kitwave reported a significant leap in turnover, surpassing £500m for the first time. And operating profit surged from £7.1m to £21.5m on the back of expansion which included the opening of a 60,000 sqft distribution centre in Wakefield.
Speaking to BusinessLive at the time, the firm's chief executive officer Paul Young said that he was confident of trading despite the squeeze on household finances - pointing to continued demand for the type of discretionary products - including sweets and alcohol - that Kitwave specialises in supplying.
Mr Young said today: "I am pleased to report on the progress made by the group in the six months ending April 30, 2023. Following a strong first half performance, and with the second half of the year typically driving increased trading, we expect full year results will be slightly ahead of market expectations.
"With the considerable opportunities still available, both in the form of organic developments and through strategic, complementary acquisitions in a largely fragmented wholesale market, we have an excellent platform for growth. We look forward to continuing to deliver value to the group and its shareholders and updating the market on our continued progress."
Kitwave was founded in 1987 and targets the UK's fragmented wholesaler market. It has specialised in impulse products and also sells frozen, chilled and fresh foods, alcohol, groceries and tobacco to independent convenience retailers, leisure outlets, vending machine operators, foodservice providers and other wholesalers, as well as leading national retailers.
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