Kitwave Group PLC blames Covid stop-start reopening process for declining profits

0


[ad_1]

“All of the group’s divisions have suffered some impact from the stop-start nature of the COVID-19 restrictions during the period,” said boss Paul Young.

(), an independent wholesaler specializing in confectionery, soft drinks and groceries, saw its shares drop after a business update.

The company, which floated at 150 pence in May, said its operating profit for the full year fell from £ 7.6million to £ 0.8million as its business was hit by COVID-19 lockdowns and closures in the leisure and hospitality industry.

Since April, he said trade has returned to close to pre-pandemic levels and is currently in line with market expectations.

Managing Director Paul Young said: “All of the group’s divisions have suffered some impact from the stop-start nature of the COVID-19 restrictions during the period. The supply to pubs, restaurants and vending machines has been severely disrupted as these businesses were either in contrast, our Frozen & Chilled division was extremely resilient and operated near pre-COVID-19 levels throughout the period.

“Since mid-May 2021, COVID-19 lockdown restrictions have been relaxed and trade has accelerated. Thanks to a period of warmer weather and consumer interest in the euro, we already know sales volumes approaching pre-pandemic levels, which was the case even before the much anticipated “Freedom Day” on July 19, 2021. As such, we remain confident that the group is on track to meet his expectations for the entire year.

“This conviction is further reinforced by the schedule for the return to normal, as it allows the group to take full advantage of the second half of our fiscal year, when trade is traditionally stronger due to the seasonality of the Frozen & Chilled division. “

In the market, however, the company’s shares lost 5.9% to 162.55p – although still above the issue price.

[ad_2]

Share.

Leave A Reply