Bakkavor Group Sells China Operations to Focus on Core Markets

Bakkavor Group plc ( (GB:BAKK) ) has shared an update.

Bakkavor Group plc has announced the sale of its China operations to Lihe Xing (Qingdao) Food Technology Co. Ltd. for approximately RMB 500 million. This strategic move is part of Bakkavor’s efforts to simplify its operations and exit the Chinese market, which has historically diluted its profit margins. The transaction is expected to complete in the second half of 2025, with proceeds aimed at reducing the Group’s leverage and supporting its medium-term margin target of 6%. This decision reflects Bakkavor’s focus on enhancing its financial performance and operational efficiency while maintaining strong customer service.

Spark’s Take on GB:BAKK Stock

According to Spark, TipRanks’ AI Analyst, GB:BAKK is a Outperform.

Bakkavor Group plc is performing well overall, with stable financial health and strong strategic growth. The stock shows positive technical momentum and is reasonably valued. Recent corporate events further bolster confidence in its strategic direction and governance. Despite a slight decline in free cash flow, the company’s strong cash generation supports ongoing operations and future growth.

To see Spark’s full report on GB:BAKK stock, click here.

More about Bakkavor Group plc

Bakkavor Group plc is a leading provider of fresh prepared food, primarily operating in the UK, US, and China. The company offers a wide range of products including meals, pizza & bread, salads, and desserts, serving major grocery retailers and international food brands. With a workforce of around 17,200 across 40 sites, Bakkavor leverages consumer insights to deliver quality, choice, convenience, and freshness.

YTD Price Performance: 20.40%

Average Trading Volume: 351,605

Technical Sentiment Signal: Sell

Current Market Cap: £990.8M

For detailed information about BAKK stock, go to TipRanks’ Stock Analysis page.