Kitwave Group has issued a profit warning as lower-than-expected demand in the hospitality sector has cut into margins.
For the three months to 31 January 2026, group revenue at the delivered wholesale business was in line with the same three-month period in 2025.
However, softer demand in hospitality resulted in “an unfavourable revenue mix”, which negatively impacted gross profit margin for the period.
Profitability was also negatively affected by continued investment in Kitwave’s southwest depot and ongoing overhead inflationary pressures, including increases in National Insurance contributions and national minimum wage.
As a result, adjusted operating profit was “materially behind the board’s expectations”. The board expects margin pressure to persist throughout the remainder of the current financial year and “remains cautious” on the outlook of the group.
It follows news last month that Kitwave has agreed to sell up to US private equity firm OEP Capital Advisors in a deal valuing the business at £246m, pending shareholder approval.
At the time, Kitwave CEO Ben Maxted said: “Since becoming a public company in 2021, Kitwave has rapidly transformed from a regional foodservice operator into an enlarged UK-wide delivered wholesale business.
“OEP has an excellent track record of helping businesses like Kitwave to significantly scale and the board believes that becoming a private company will provide greater financial flexibility to achieve its ambitions.”
As of 22 January, when the news was announced, the bid already had commitments of support from the shareholders of around 21.6% of Kitwave’s equity, including Kitwave’s directors.
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