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magazineBakkavor shares remain in the doldrums after workers vote to strike
Shares in Bakkavor (BAKK) are trading 20% lower than their February year-to-date high, with strike action being the latest issue to worry investors.
Production staff in its London pizza factory have voted to down tools in a dispute over pay. This could affect supplies for big name clients including Sainsbury’s (SBRY), Tesco (TSCO) and Waitrose.
Bakkavor was hit by a slowdown last year in the UK fresh prepared food market, compounding existing cost pressures including the rising price of raw materials and higher wages. It subsequently announced a plan to restructure the business to protect profits including the closure of two factories.
A trading update in January was well received by the market, with revenue growth driven by price hikes in the UK and strong volume growth in the US. This triggered a short-lived share price rally, but the stock has been weak for most of 2023.
Half-year results on 6 September included an upgrade to its full-year earnings guidance but it wasn’t enough to lift the share price out of its rut.
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- Bakkavor shares remain in the doldrums after workers vote to strike
