**Summary of Kitwave Group PLCs Unaudited Interim Results for the Year Ended 31 October 2025**
**Financial Highlights**
**Revenue Growth** Revenue increased by 20.9% to £802.7 million (FY 2024: £663.7 million), with a 1% decline in like-for-like revenue.
**Gross Margin Improvement** Consolidated gross margin rose to 22.9% (FY 2024: 22.3%).
**Adjusted Operating Profit** Up 11.7% to £38.0 million (FY 2024: £34.0 million).
**Cash Generation** Operating activities generated £46.4 million in cash (FY 2024: £31.4 million), with a pre-tax operational cash conversion of 104% (FY 2024: 90%).
**Balance Sheet Strength** Leverage reduced to 2.3x including IFRS 16 lease liabilities (FY 2024: 2.8x) and 1.4x excluding them (FY 2024: 1.9x).
**Operational Highlights**
**Retail & Wholesale Division** Outperformed FY 2024 in both revenue and adjusted operating profit.
**Foodservice Integration** Completed integration of Total Foodservice and Miller Foodservice into Creed Foodservice, with ongoing operational synergies.
**South West Distribution Centre** Now operating at required service levels after capital and operational investments.
**Creed Foodservice** Achieved growth despite economic headwinds in retail and leisure sectors.
**Outlook**
Trading in line with management expectations.
Focus on operational and commercial synergies to mitigate cost headwinds and support future growth.
Acknowledgment of macroeconomic uncertainty, inflationary pressures, and wage increases impacting margins and costs.
**Proposed Acquisition**
Kitwave has announced terms for its proposed acquisition by OEP Capital Advisors L.P., offering an attractive proposition for shareholders and stakeholders.
**CEO Commentary**
Record revenue and adjusted operating profit achieved.
Significant operational changes in the expanded foodservice division through integrations.
Retail and Wholesale division continues to perform robustly, leveraging consumer demand and service excellence.
Strong cash generation and balance sheet position, with de-leveraging as expected.
**Divisional Performance**
**Retail & Wholesale** Combined revenue up 3.0% to £453.1 million, driven by new customers and higher ice cream sales.
**Foodservice** Revenue grew to £349.6 million, with Creed Foodservice showing year-on-year growth despite softer demand in leisure and hospitality.
**Financial Metrics**
**Adjusted EBITDA** Increased to £53.4 million (FY 2024: £45.2 million).
**Profit Before Tax** £22.4 million (FY 2024: £22.5 million).
**Net Debt** Reduced by £5.8 million to £122.0 million.
**Strategic Focus**
Continued pursuit of strategic acquisitions and organic growth through infrastructure and technology investments.
National footprint and integration efforts provide a platform for long-term strategic aims and operational efficiencies.
**Conclusion**
Kitwave Group PLC has demonstrated strong financial and operational performance, with significant progress in integrating its foodservice division and maintaining robust growth in its retail and wholesale sectors. Despite macroeconomic challenges, the company remains focused on sustainable growth and operational excellence, supported by a strong balance sheet and strategic acquisitions. The proposed acquisition by OEP Capital Advisors L.P. highlights the companys attractiveness to investors.
| Metric | FY 2025 (£m) | FY 2024 (£m) | Change |
|---|---|---|---|
| Revenue | 802.7 | 663.7 | +20.9% |
| Gross Profit | 183.2 | 147.8 | +23.9% |
| Gross Profit Margin (%) | 22.8% | 22.3% | +0.5% |
| Adjusted Operating Profit | 38.0 | 34.0 | +11.7% |
| Net Cash Inflow from Operating Activities | 46.4 | 31.4 | +47.8% |
| Net Debt (including IFRS 16) | 122.0 | 127.8 | -4.5% |
| Leverage (including IFRS 16) | 2.3x | 2.8x | -17.9% |
| Net Debt (excluding IFRS 16) | 74.1 | 84.6 | -12.4% |
| Leverage (excluding IFRS 16) | 1.4x | 1.9x | -26.3% |