Greencore ups adjusted operating profit guide amid new business wins

(Alliance News) - Greencore Group PLC on Wednesday said volume growth momentum continued into its financial fourth quarter, citing favourable weather and product innovation.

The Dublin-based convenience foods maker said revenue rose 8% both in the fourth quarter and in the full financial year that ended September 26.

Product innovation was a "strong" contributor to growth, Greencore said, bringing new business wins. Favourable weather in the UK and Ireland also helped, it said.

Greencore expects to report annual revenue of about GBP1.95 billion, up 7.9% from GBP1.81 billion in financial 2024.

Further, it estimates adjusted operating profit of around GBP125 million, higher than previous guidance of between GBP118 million and GBP121 million, and up 28% from GBP97.5 million in financial 2024. The new guidance is higher than the company-compiled consensus as at Monday, which had a range between GBP119.5 million and GBP121.8 million.

Chief Executive Officer Dalton Philips said: "Our focus in the new financial year remains on producing high-quality, fresh food for consumers across the UK. We look forward to completing the Bakkavor transaction, subject to regulatory approval, and remain excited about the potential of combining two great UK food businesses, enhancing our product offering for our customers and UK consumers."

Greencore said it is progressing with the agreed acquisition of Bakkavor Group PLC, a London-based manufacturer and distributor of fresh prepared foods.

The two companies, both FTSE 250 listings, announced their agreed merger back in May. Dublin-based Greencore will buy Bakkavor in a cash-and-shares deal that valued Bakkavor at GBP1.2 billion at the time. Greencore will pay 85 pence in cash, plus 0.604 of a new Greencore share for each Bakkavor share.

Greencore shares were 0.4% lower at 231.00 pence each on Wednesday morning in London, giving the company a market capitalisation of GBP1.02 billion. Bakkavor shares were up 3.6% to 215.50p for a GBP1.25 billion market cap.

At Greencore's share price on Wednesday, its offer is worth 224.52p per Bakkavor share.

Greencore will publish its annual results on November 18.

By Tom Budszus, Alliance News slot editor

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