Kitwave Group plc (LSE:KITW) reported record unaudited revenue of £802.7m for the year ended 31 October 2025, representing year-on-year growth of 20.9%. Gross margin improved to 22.8%, while adjusted operating profit increased by 11.7% to £38.0m, largely reflecting continued expansion and a favourable mix shift within the higher-margin Foodservice division.
The group delivered strong cash generation, with cash conversion improving to 104%, and reduced leverage to 2.3x including leases, highlighting a strengthening balance sheet. Reported earnings per share edged lower, however, reflecting an increased share count and the impact of short-term restructuring and integration costs. These costs were associated with the consolidation of foodservice depots and the ramp-up of a new South West distribution centre.
Management said these investments, together with the completed integration of recent foodservice acquisitions into the Creed Foodservice platform and a solid performance from the Retail & Wholesale division, leave the group well positioned to realise operational synergies and support future growth despite a challenging macroeconomic backdrop. In addition, the proposed acquisition of the group by OEP Capital Advisors L.P. has been highlighted as offering an attractive potential outcome for shareholders.
Overall, Kitwave Group plc’s outlook is shaped by its strong financial performance and appealing valuation metrics. This is tempered by bearish technical indicators, which suggest some near-term caution, while the lack of recent earnings call commentary and major new corporate developments limits further insight.
More about Kitwave Group plc
Kitwave Group plc is a UK-based delivered wholesale business supplying impulse products, frozen, chilled and fresh food, alcohol, groceries and tobacco to around 46,000 predominantly independent customers. Operating from a national network of 37 depots, the group serves convenience retailers, leisure operators, vending businesses, foodservice providers, other wholesalers and major national retailers, and has expanded through a combination of organic growth and acquisitions in the fragmented grocery and foodservice wholesale market.
Leave a Reply