Kitwave, a prominent wholesaler based in North Shields, has marked a significant uptick in performance over the summer. This improvement follows strategic investments and is a promising indicator for the remainder of the financial year.
Over the past four months, the group has experienced robust customer demand, particularly during what is traditionally its busiest period. The uplift in activity is attributed to both technological advancements and strategic acquisitions.
Technological Investments Drive Efficiency
Kitwave’s recent investments in voice-picking technology at its Northern ambient hub have substantially boosted operational efficiency. This technology has streamlined the picking process, reducing errors and improving overall productivity.
The implementation of this advanced system represents a pivotal shift in how Kitwave manages its logistics, allowing seamless integration and better inventory management. This development is a key factor in the company’s strong summer performance.
Strategic Acquisitions and Expansion
The acquisitions of Wilds of Oldham and Total Foodservice Solutions have significantly contributed to Kitwave’s growth. These acquisitions not only expanded Kitwave’s customer base but also enhanced its service offerings across various regions.
The completion of Kitwave’s new 80,000 sqft foodservice distribution facility in the South West marks another milestone. Scheduled to be operational by the end of October, the facility consolidates three sites, benefitting the WestCountry and M.J. Baker businesses by centralising operations.
Financial Performance Amid Challenging Conditions
Despite facing challenges due to adverse weather in the first half of the year, Kitwave reported a remarkable 8% increase in revenues, reaching £297 million. However, operating profits saw a slight decline, reflecting the narrow operating margins.
Revenue from the foodservice division grew impressively by over 15% to £93 million, although adjusted operating profits dipped to £6.2 million from £7.3 million the previous year. In the retail and wholesale division, revenues rose to £204 million, with a modest increase in operating profits.
Leadership and Market Confidence
CEO Ben Maxted remains optimistic about Kitwave’s growth trajectory, crediting the combination of strong sales and successful integration of recent investments. “The group continues to execute its growth objectives successfully,” he stated.
CFO David Brind highlighted the steady customer levels throughout the period, despite initial setbacks due to the wet weather. He noted a rebound in orders as conditions improved, underscoring the firm’s resilience and adaptive strategies.
Operational Enhancements and Future Outlook
The Southeast distribution centre, a critical project for Kitwave, is progressing on schedule. This facility will enhance the company’s logistical capabilities, ensuring faster and more reliable service to its expanding customer base.
Future prospects look promising, with Kitwave poised to capitalise on its expanded infrastructure and integrated services. The company’s strategic focus on technology and acquisitions positions it well for sustained growth.
Kitwave’s consistency in executing its growth plans and delivering strong results underlines its commitment to remaining a leading player in the wholesale sector. Investors and stakeholders can anticipate continued positive performance as these enhancements come to full fruition.
Market Performance and Customer Demand
In light of the second half of the year, Kitwave anticipates continued strong customer demand, bolstered by its recent improvements in operational efficiency and service delivery.
The company’s strategic initiatives, coupled with favourable weather conditions, are expected to drive further growth, ensuring that Kitwave meets its financial targets for the year.
Kitwave’s strategic investments and acquisitions have clearly paid off, resulting in a robust summer performance and a positive outlook for the year’s end.
The company’s focus on technological enhancements and operational efficiency positions it well for continued success in the competitive wholesale market.