Food manufacturer Bakkavor delivered a “strong performance” in 2024 as sales and profits increased, despite facing challenges late last year with prolonged industrial action by its factory workers.

In the 52 weeks ending 28 December, the manufacturer’s adjusted operating profit jumped 20.5% to £113.6m, ahead of the upper end of market expectations.

Like-for-like sales increased by 5.1% to £2.3bn, which the company said was driven by volume growth in all regions.

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However, overall operating profit fell by 3.7% to £93.4m as Bakkavor absorbed £20.2m of exceptional costs primarily related to the closure of its Wigan factory.

Bakkavor CEO Mike Edwards said: “Our ongoing efficiency focus drove margin improvement and we have further strengthened our balance sheet which has allowed us to continue to invest in both our business and our people.

“The momentum we have created and our clear strategy underpins our confidence in delivering further margin improvement in FY25 as we continue on our trajectory to our 6% target.”

The manufacturer said that trading in early 2025 has started “in line with expectations”, with sales expected to be broadly in line with FY24.

Bakkavor makes a broad range of products, including meals, breads, pizzas, dips, salads and desserts. It describes itself as “The biggest name you’ve never heard of.”