Greencore profit jumps and sells asset to clear Bakkavor deal hurdle

(Alliance News) - Greencore Group PLC on Tuesday posted a strong rise in annual earnings while it reported it has sold a Bristol site to secure regulatory backing for its takeover of Bakkavor Group PLC.

The company was at the top of London's FTSE 250 index on Tuesday morning, up 4.9% at 235.00 pence. Bakkavor was following in second place, up 2.8% at 224.50 pence.

The convenience food provider said pretax profit rose 29% to GBP79.5 million in the year to September 26, up from GBP61.5 million.

Revenue increased 7.7% to GBP1.95 billion from GBP1.81 billion.

Adjusted operating profit grew 29% to GBP125.7 million, lifting adjusted operating margin by 110 basis points to 6.5%. Free cash flow improved to GBP120.5 million, while net debt excluding leases fell to GBP70.1 million from GBP148.1 million.

Chief Executive Officer Dalton Philips said financial 2025 was an "outstanding" year.

"Momentum has continued into the new financial year and I'm excited for what's to come in financial 2026, a year that also marks Greencore's 100th year in business," Philips said.

Greencore proposed a total dividend of 2.6 pence, up 30% from 2.0p, and confirmed it intends to move to a progressive dividend policy.

Greencore said it still expects to complete its recommended takeover of Bakkavor in early 2026, after the UK Competition & Markets Authority accepted its proposed remedy to address competition concerns in chilled sauces.

To secure approval, Greencore agreed to sell its Bristol chilled soups and sauces site to Compleat Food Group Holding Ltd. The site generated GBP47 million of revenue in financial 2025. The disposal remains subject to formal CMA sign-off.

The transaction will remove the need for a phase 2 investigation and keeps the acquisition timetable on track, the company said.

Greencore said trading at the beginning of the new financial year "has started positively" and it expects another year of profitable growth, although it continues to face inflationary pressures in protein and labour costs.

By Eva Castanedo, Alliance News reporter

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