Kitwave Group PLC (KITW) AI Stock Analysis

• Market Cap: £205.99M
• Dividend Yield: 6.06%
• Average Volume (3M): 377.06K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.90
• Revenue Growth: 19.01%
• EPS Growth: -15.21%
• Country: UK
• Employees: 2,100
• Sector: Consumer Defensive
• Sector Strength: 56
• Industry: Food Distribution
• EPS (TTM): 0.08
• Shares Outstanding: 83,736,540
• 10 Day Avg. Volume: 701,630
• 30 Day Avg. Volume: 377,057
• PEG Ratio: <0.01
• Price to Book (P/B): 1.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.88
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £447.50
• Price Target Upside: 84.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: 274.00p ▲(13.22%Upside)

The overall stock score reflects strong financial performance and positive corporate events as the most significant factors. Despite technical indicators suggesting a bearish trend, the company's attractive valuation and strategic initiatives support a positive outlook.

Positive Factors

Expansion and Growth

Kitwave opened a new Foodservice distribution centre in the South West, and continues to look to drive synergy and operational efficiency benefits to mitigate ongoing cost headwinds, with good progress being made.

Integration and Synergy

The integration of Creed is progressing well, with synergy benefits expected to start in H2 2025 and full benefits realised by early 2026.

Negative Factors

Market Challenges

Despite challenges in the hospitality sector impacting the Foodservice performance in the early months, Kitwave's trading for the six-month period ended 30 April 2025 was in line with expectations.

Kitwave Group PLC Business Overview & Revenue Model

Company Description

Kitwave Group plc engages in the wholesale business in the United Kingdom. The company operates through three divisions: Ambient, Frozen & Chilled, and Foodservice. The Ambient division supplies confectionery, soft drinks, crisps and snacks, and tobacco. This division serves independent convenience stores, vending operators, national retailers, and other UK wholesalers through a network of 6 depots. The Frozen & Chilled division offers ice creams, pizzas, chips, ready meals, and a range of chilled products. It serves independent convenience stores, leisure outlets, and UK wholesalers through a network of 10 depots. The Foodservice division provides frozen, chilled, and ambient food, as well as alcohol and soft drinks to independent traditional foodservice outlets, including bars, restaurants, and leisure outlets, as well as customers in the care home and education sectors through a network of 11 depots. The company was founded in 1987 and is headquartered in North Shields, the United Kingdom.

How the Company Makes Money

Kitwave Group PLC generates revenue primarily through the wholesale distribution of a broad range of products. The company's key revenue streams include the sale of ambient, frozen, and chilled foods, as well as confectionery, tobacco, and alcohol products. Kitwave leverages its extensive distribution network and strategically located depots across the UK to efficiently supply these goods to independent retailers, foodservice operators, and other businesses. Additionally, the company may engage in strategic partnerships with manufacturers and suppliers to enhance its product offerings and maintain competitive pricing, thus driving sales volume and profitability.

Kitwave Group PLC Financial Statement Overview

Summary

Kitwave Group PLC has shown strong revenue growth and operational efficiency with healthy gross profit and EBIT margins. However, the decline in net income and increasing debt levels are concerns that need addressing to maintain financial health.

Income Statement

Kitwave Group PLC has demonstrated strong revenue growth, with a significant increase from the previous year. The gross profit and EBIT margins are healthy, indicating efficient cost management. However, the decline in net income and its margin suggests potential challenges in managing operating expenses or interest costs.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, indicating a reasonable level of leverage. The equity ratio is satisfactory, suggesting a stable asset base supported by equity. However, the increasing total debt over the years could pose potential financial risks if not managed properly.

Cash Flow

Kitwave's cash flow statement indicates solid operating cash flow relative to net income, supporting its operational efficiency. The consistent free cash flow generation is a positive sign, although the decrease in free cash flow compared to the previous year is a concern. The company must maintain its cash flow to ensure financial flexibility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	663.65M	602.22M	503.09M	380.69M	592.02M
Gross Profit	147.82M	132.13M	102.63M	68.58M	96.02M
EBITDA	41.40M	39.33M	28.37M	19.77M	24.63M
Net Income	16.72M	18.96M	14.34M	1.10M	-500.00K
Balance Sheet
Total Assets	359.29M	209.59M	179.66M	148.82M	129.86M
Cash, Cash Equivalents and Short-Term Investments	4.14M	673.00K	5.51M	4.97M	342.00K
Total Debt	121.39M	59.07M	49.10M	39.26M	82.16M
Total Liabilities	234.74M	125.14M	107.77M	87.23M	129.92M
Stockholders Equity	124.55M	84.44M	71.89M	61.58M	-53.00K
Cash Flow
Free Cash Flow	24.13M	26.38M	23.92M	4.96M	26.76M
Operating Cash Flow	31.40M	30.30M	26.52M	7.92M	29.89M
Investing Cash Flow	-77.09M	-23.04M	-19.21M	-2.71M	-16.30M
Financing Cash Flow	49.15M	-12.10M	-6.77M	-577.00K	-14.45M

Kitwave Group PLC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 242.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:KITW, the sentiment is Negative. The current price of 242 is below the 20-day moving average (MA) of 309.00, below the 50-day MA of 309.40, and below the 200-day MA of 297.42, indicating a bearish trend. The MACD of -12.32 indicates Positive momentum. The RSI at 17.59 is Positive, neither overbought nor oversold. The STOCH value of 10.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:KITW.

Kitwave Group PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BNZL	73 Outperform	£7.69B	15.77	17.39%	3.35%	-0.18%	-4.60%
NICL	73 Outperform	£515.52M	28.87	19.67%	0.01%	1.21%	-2.98%
KITW	73 Outperform	£205.99M	11.49	15.19%	6.06%	19.01%	-15.21%
MCB	69 Neutral	£256.74M	6.54	64.21%	―	0.81%	125.55%
Sector *	65 Neutral	$27.28B	15.30	-4.01%	3.16%	1.00%	1.98%
54GW	63 Neutral	£329.17M	―		3.72%	―	―
PZC	50 Neutral	£299.10M	―	-2.48%	2.10%	-16.16%	80.50%

Kitwave Group PLC Corporate Events

Kitwave Group PLC Reports Revenue Growth Amid Operational Challenges

Kitwave Group PLC reported a 26.7% increase in revenue to £376.2 million for the six months ending April 2025, driven by strategic acquisitions and infrastructure investments. Despite record revenue and operating profits, the company anticipates lower than expected financial performance due to increased operational costs, macroeconomic challenges affecting consumer confidence, and higher employer National Insurance contributions. The integration of Creed Foodservice and the new South West distribution center have strengthened Kitwave’s position, but the company has revised its profit expectations for the year. Kitwave remains confident in its long-term strategy and continues to focus on service-led growth initiatives, supported by a robust balance sheet.

The most recent analyst rating on (GB:KITW) stock is a Buy with a £495.00 price target. To see the full list of analyst forecasts on Kitwave Group PLC stock, see the GB:KITW Stock Forecast page.

Kitwave Group PLC to Announce Interim Results on 1 July 2025

Kitwave Group PLC has announced that it will release its interim results for the six months ended 30 April 2025 on 1 July 2025. Following the announcement, CEO Ben Maxted and CFO David Brind will host an online analyst briefing. This upcoming release is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (GB:KITW) stock is a Buy with a £495.00 price target. To see the full list of analyst forecasts on Kitwave Group PLC stock, see the GB:KITW Stock Forecast page.

Kitwave Group Appoints Dr. Marnie Millard as Non-Executive Chair

Kitwave Group PLC has appointed Dr. Marnie Millard OBE as the new Non-Executive Chair, effective from May 30, 2025, succeeding Steve Smith. Dr. Millard brings extensive experience from her previous roles, including CEO of Nichols Plc, where she significantly increased market capitalization and led successful acquisitions. Her appointment is expected to support Kitwave’s growth strategy and enhance its customer offerings. The outgoing Chair, Steve Smith, played a crucial role in the company’s development, including its IPO in 2021, and his contributions are acknowledged as pivotal to Kitwave’s expansion as a public company.

The most recent analyst rating on (GB:KITW) stock is a Buy with a £495.00 price target. To see the full list of analyst forecasts on Kitwave Group PLC stock, see the GB:KITW Stock Forecast page.

Kitwave Group PLC Reports Steady Trading and Strategic Expansion

Kitwave Group PLC reported that its trading for the six-month period ending April 2025 was in line with expectations, despite initial weaker demand in the Foodservice division due to hospitality-related revenue declines. The company opened a new Foodservice distribution center in the South West, incurring additional short-term costs to ensure customer service quality. The integration of Creed Foodservice, Kitwave’s largest acquisition, is progressing well, with expected synergy benefits to begin in the second half of 2025. The acquisition has enhanced Kitwave’s national foodservice network, offering immediate customer opportunities and distribution efficiencies. The company remains confident in meeting full-year market expectations, with performance typically stronger in the second half of the year.

Kitwave Group PLC Announces Management Incentive Awards

Kitwave Group PLC has announced the granting of awards under its Long Term Incentive Plan to several key management personnel. These awards, which include nil-cost options and conditional share awards, are part of the company’s strategy to incentivize performance and align management interests with those of shareholders, potentially impacting the company’s market positioning and stakeholder relations positively.