Kitwave sales grow as acquisitions drive growth in the North

Kitwave reported an 8% increase in sales to £297m in the six months to 30 April 2024, an increase of 8% compared to the same period last year.

The group reported EBITDA of £15.9m, down slightly on the previous year from £16m.

The sales increase was partly due to Kitwave’s new acquisitions of Wilds of Oldham and Total Foodservice.

Kitwave said the two businesses have been well integrated and will contribute to the expansion of the wholesaler’s foodservice operations in the north of the country.

The results indicate the group is well placed to continue its strategy under new chief executive Ben Maxted, six months after the retirement of his predecessor Paul Young.

The group expects full-year financial results to be in line with market expectations, “despite a slight decline” in operating profit in the first quarter and wet weather in the summer, Maxted said.

“The Group made positive progress towards its strategic objectives in the first half of 2024, implementing a number of important investments that will benefit the Group in the longer term,” he said.

“The continuation of our acquisition strategy has seen Wilds and Total Foodservice brought into the group, increasing our presence in the foodservice sector in the north. Their integration into the group has been successful and workstreams to further integrate the enlarged northern foodservice business have commenced.

“Our new food distribution facility in the Southwest is nearing completion, which will both expand our capacity and further streamline our operations as we consolidate three existing warehouses.”

“Despite a slight decline in operating profit in the first half of 2024 and continued wet weather in May and early June, we expect the full year ending October 31, 2024 to be in line with market expectations.”