Greencore has further raised its operating profit forecast for the recently concluded financial year, thanks to above-market volume growth, improved profitability, and positive cash flow generation. The Irish-based food group, specializing in the production of ready meals and fresh foods for UK retailers, now expects to achieve adjusted operating profit from continuing operations of approximately £248 million, exceeding both analysts' expectations and the company's previous estimates.
In its fourth fiscal quarter, which ended in September, Greencore reported revenue of £1,036 billion, up 4,5% compared to the same period the previous year. This result reflects sales volume growth and the recovery of higher costs related to labor, packaging, and some raw materials, in an environment still characterized by inflationary pressures.
A key step in the group's evolution was the acquisition of Bakkavor, completed in January, which created the leading British manufacturer of fresh, ready-to-eat foods. Bakkavor's customers include Tesco, Marks & Spencer, and Waitrose, while Greencore supplies all major UK supermarket chains and is the country's largest producer of packaged sandwiches.
The integration between the two companies is helping to expand the offering and develop new business opportunities. In the fourth quarter alone, 167 new products were launched, including two premium lines of Italian ready meals, new summer sandwich and salad ranges for on-the-go consumption, and a limited-edition mac and cheese selection inspired by American restaurants.
The first quarter of the new fiscal year also started positively, with volume growth continuing in line with previous results. Despite the uncertain macroeconomic environment, Greencore remains confident in the group's prospects and in the resilience of demand in its main product categories.
CEO Dalton Philips called the past year a particularly important one for the company, emphasizing how above-market growth, stronger profits, and progress in integrating with Bakkavor have further improved the financial outlook. According to the manager, the expansion of the customer base is also fostering new cross-selling opportunities across product categories.
For the 2027 financial year, Greencore intends to focus on developing innovative, high-quality fresh foods, strengthening relationships with retailers, and leveraging synergies arising from the acquisition, with the aim of further strengthening its position in the UK convenience food market.
