Bakkavor Group plc (GB:BAKK)
LSE:BAKK

Bakkavor Group plc (BAKK) AI Stock Analysis

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GB

Bakkavor Group plc

(LSE:BAKK)

74Outperform
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.

Bakkavor Group plc (BAKK) vs. S&P 500 (SPY)

Bakkavor Group plc Business Overview & Revenue Model

Company DescriptionBakkavor Group plc (BAKK) is a leading international manufacturer of fresh prepared foods. The company operates predominantly in the United Kingdom, United States, and China. Bakkavor specializes in creating ready meals, salads, desserts, and pizza & bread products, primarily for major grocery retailers and foodservice operators. Leveraging its extensive expertise in culinary and food safety standards, Bakkavor delivers high-quality and innovative food solutions to meet the evolving demands of modern consumers.
How the Company Makes MoneyBakkavor Group plc generates revenue through the production and sale of fresh prepared foods. Its key revenue streams include supplying ready meals, salads, desserts, and pizza & bread products to major grocery retailers such as Tesco, Sainsbury's, and Marks & Spencer, as well as foodservice operators. The company benefits from long-term supply agreements and strategic partnerships with its retail clients, allowing it to maintain consistent revenue. Bakkavor's strong focus on innovation and product development also helps to sustain its competitive edge and grow its market share. Additionally, the company's international operations in the United States and China provide opportunities for revenue diversification and expansion into new markets.

Bakkavor Group plc Financial Statement Overview

Summary
Bakkavor Group plc demonstrates stable financial health with consistent revenue growth and solid profitability margins. The net profit margin improved to 2.43%, and the company maintains a balanced capital structure. Despite a slight decrease in free cash flow, strong cash generation relative to earnings is evident, supporting operations and investments.
Income Statement
78
Positive
Bakkavor Group plc demonstrates strong revenue growth of 4.03% from 2023 to 2024, driven by consistent increases in total revenue over the years. The gross profit margin for 2024 is 27.71%, indicating effective cost management. The net profit margin improved slightly to 2.43%, showing moderate profitability. The EBIT margin is at 4.08%, while the EBITDA margin is at 7.14%, both reflecting stable operating performance.
Balance Sheet
70
Positive
The company's debt-to-equity ratio is 0.50, indicating a balanced leverage position. The return on equity (ROE) for 2024 is 9.04%, showcasing a reasonable return for shareholders. The equity ratio stands at 41.10%, suggesting a solid capital structure with a healthy proportion of equity.
Cash Flow
75
Positive
Bakkavor's free cash flow decreased slightly to 94 million in 2024 from 103.8 million in 2023, resulting in a negative free cash flow growth rate. However, the operating cash flow to net income ratio of 2.70 and free cash flow to net income ratio of 1.69 indicate strong cash generation relative to earnings.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
2.23B2.29B2.20B2.14B1.87B1.79B
Gross Profit
577.10M635.30M589.40M493.70M475.00M447.50M
EBIT
109.80M93.40M97.10M86.40M101.70M71.60M
EBITDA
183.20M163.80M168.50M106.90M163.70M131.60M
Net Income Common Stockholders
64.00M55.70M53.90M12.50M56.80M34.10M
Balance SheetCash, Cash Equivalents and Short-Term Investments
25.30M29.90M36.60M40.20M31.10M24.80M
Total Assets
1.25B1.50B1.48B1.54B1.50B1.45B
Total Debt
388.70M306.60M355.90M419.10M405.00M434.30M
Net Debt
366.20M276.70M319.30M378.90M373.90M409.50M
Total Liabilities
871.30M882.50M872.70M923.60M862.80M851.10M
Stockholders Equity
378.80M616.10M607.60M617.80M640.70M598.10M
Cash FlowFree Cash Flow
121.20M94.00M103.80M63.30M84.90M32.20M
Operating Cash Flow
155.40M150.30M147.70M127.30M144.70M88.60M
Investing Cash Flow
-30.50M-50.50M-39.10M-63.90M-55.60M-56.30M
Financing Cash Flow
-104.20M-106.50M-113.30M-55.40M-83.00M-33.20M

Bakkavor Group plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price186.00
Price Trends
50DMA
154.66
Positive
100DMA
147.11
Positive
200DMA
148.91
Positive
Market Momentum
MACD
8.18
Negative
RSI
63.04
Neutral
STOCH
79.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BAKK, the sentiment is Positive. The current price of 186 is above the 20-day moving average (MA) of 170.04, above the 50-day MA of 154.66, and above the 200-day MA of 148.91, indicating a bullish trend. The MACD of 8.18 indicates Negative momentum. The RSI at 63.04 is Neutral, neither overbought nor oversold. The STOCH value of 79.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:BAKK.

Bakkavor Group plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBABF
80
Outperform
£14.29B10.2413.06%3.25%1.64%44.38%
GBNXT
77
Outperform
£13.39B18.6246.76%1.92%12.83%15.54%
74
Outperform
£1.10B19.679.10%4.00%4.03%3.21%
GBGNC
72
Outperform
£782.21M17.9710.18%1.13%-5.57%38.90%
63
Neutral
$20.94B14.39-10.05%3.13%1.25%3.11%
63
Neutral
£2.27B12.2412.23%3.75%-11.03%-2.05%
59
Neutral
£218.88M2.70%3.02%29.25%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:BAKK
Bakkavor Group plc
186.00
81.12
77.35%
GB:TATE
Tate & Lyle
496.20
-93.55
-15.86%
GB:NXT
Next plc
11,230.00
2,599.91
30.13%
GB:GNC
Greencore
177.40
46.22
35.23%
GB:ABF
Associated British Foods
1,940.50
-375.19
-16.20%
GB:MARS
Marston's
33.30
5.90
21.53%

Bakkavor Group plc Corporate Events

M&A Transactions
Bakkavor Rejects Greencore’s Acquisition Proposal
Neutral
Mar 14, 2025

Bakkavor Group plc has rejected an unsolicited acquisition proposal from Greencore Group plc, which included a conditional cash and share offer for the company’s entire issued share capital. The board of Bakkavor, after consulting with financial advisers, determined that the proposal significantly undervalued the company and its future prospects. Greencore now faces a deadline to either make a firm offer or announce its intention not to proceed, which could impact stakeholder interests and market dynamics.

Shareholder Meetings
Bakkavor Group Announces 2025 Virtual AGM Details
Neutral
Mar 13, 2025

Bakkavor Group plc has announced the availability of documents for its 2025 Annual General Meeting, which will be held virtually on 22 May 2025. The notice and proxy form are accessible on the company’s website, with printed copies available for shareholders who prefer hard copies. This announcement ensures transparency and accessibility for stakeholders, reinforcing Bakkavor’s commitment to effective corporate governance.

Financial Disclosures
Bakkavor Group Releases FY 2024 Annual Report
Neutral
Mar 4, 2025

Bakkavor Group plc has published its FY 2024 Annual Report and Accounts, following the announcement of its full-year audited results for the 52-week period ending December 28, 2024. The report is accessible on the company’s website and will be distributed in print to shareholders who have opted for hard copies. This release underscores Bakkavor’s commitment to transparency and provides stakeholders with detailed insights into the company’s financial performance and strategic positioning.

Business Operations and StrategyFinancial Disclosures
Bakkavor Group Reports Strong 2024 Financial Results, Exceeding Expectations
Positive
Mar 4, 2025

Bakkavor Group plc has reported strong financial results for 2024, with a 4% increase in reported revenue to £2,292.7 million and a 20.5% rise in adjusted operating profit to £113.6 million, surpassing market expectations. The company has improved its profit margins through strategic efficiency measures and has strengthened its balance sheet by reducing net debt by £35.8 million. Bakkavor’s strategic focus on operational excellence and market leadership has driven growth across its UK and international markets, with significant progress in the US and China. The company remains confident in achieving its medium-term target of a 6% adjusted operating profit margin by 2027.

Business Operations and StrategyFinancial Disclosures
Bakkavor Group Exceeds 2024 Financial Expectations with Strategic Growth
Positive
Mar 4, 2025

Bakkavor Group plc reported strong financial results for 2024, surpassing market expectations with a 4.0% increase in reported revenue to £2,292.7 million and a 20.5% rise in adjusted operating profit to £113.6 million. The company achieved significant margin improvements through strategic initiatives across its UK and international markets, including efficiency enhancements and business restructuring. Despite challenges such as the closure of a UK site, Bakkavor strengthened its balance sheet by reducing net debt and improving leverage, while also increasing its return on invested capital. The company remains confident in its strategic trajectory, aiming for a 6% adjusted operating profit margin by 2027.

Executive/Board Changes
Bakkavor Director Jane Lodge Appointed to Morgan Advanced Materials Board
Positive
Feb 28, 2025

Bakkavor Group plc announced that Jane Lodge, an Independent Non-executive Director and Chair of the Company’s Audit & Risk Committee, has been appointed as an Independent Non-executive Director of Morgan Advanced Materials plc, effective from 1 June 2025. This appointment reflects Bakkavor’s commitment to strong governance and may enhance its strategic oversight, potentially impacting its market positioning positively.

Bakkavor Group Exceeds 2024 Market Expectations, Strengthens Strategic Position
Jan 16, 2025

Bakkavor Group reported a strong performance for the financial year 2024, surpassing market expectations with a 5.1% increase in like-for-like revenue and a 4.0% rise in reported revenue. The company’s strategic focus on efficiency improvements has resulted in profit margin enhancements across its UK, US, and China markets. The Group anticipates its adjusted operating profit to align with the upper range of market forecasts and aims to achieve a 6% profit margin in the medium term, demonstrating confidence in its ongoing strategic initiatives.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.