Convenience food manufacturer Greencore Group plc has reported a “strong financial and operational performance” for the year so far.
In its trading update for the 13 weeks ended June 27, Greencore said its revenue was particularly strong in Q3, with revenue increasing 9.9% to £511.1 million, supported by favourable summer weather and new business wins.
This was driven by an increase in total volumes and mix of 6.8% and the positive impact of inflation recovery of 3.1%
Overall manufactured volume grew 3.6% in Q3 and underlying volume growth was 1.9% (excluding new business wins), ahead of the wider grocery market growth of 0.7%.
Volume growth was encouraging across most categories, particularly in sandwiches, sushi and ready meals, Greencore reports.
Innovation
Greencore said it continued to invest in product innovation during the quarter to support this growth, launching 168 new products in time for the peak summer season.
These products included a Japanese-inspired strawberry and creme sandwich and a range of poke bowls.
Profit conversion during Q3 was ahead of management’s expectations, driven by strong volume momentum and disciplined cost management, the company said.
While Greencore said it remains cautious around the uncertain UK economic environment, alongside continued inflationary pressures, particularly in protein and labour, the group now anticipates full-year 2025 adjusted operating profit will be in a range of £118-121 million, ahead of previous guidance.
The group continues to progress with the proposed acquisition of Bakkavor Group plc and said it was pleased to receive approval for the transaction from both Greencore and Bakkavor shareholders in early July.
The completion of this transaction is expected in early 2026, subject to regulatory approval, notably from the Competition and Markets Authority in the UK.
Maintaining momentum
Dalton Philips, Greencore chief executive, said the Greencore team has delivered “another outstanding performance in Q3, with particularly strong volume momentum, aided by favourable summer weather and new business wins”.
“As a close strategic partner to our customers, I’m delighted with how we have been able to deliver market-leading convenience food innovation, strong service levels and products of the highest quality to our retail customers and their shoppers,” Philips said.
“As we enter our seasonally-important Q4, our focus remains on maintaining momentum in our business.
“While we are mindful of an uncertain economic backdrop and ongoing inflationary pressures, we now expect to deliver a full-year adjusted operating profit of £118-121 million, ahead of previous guidance.”
Greencore’s head office is based in Dublin, with manufacturing sites and distribution depots across the UK.
