Greencore is exploring a sale of Bakkavor’s US business, following the completion of the two prepared food giants’ merger on 16 January 2026.
The potential sale was announced alongside a set of consensus-beating set of first half results for the combined group, which registered 3.2% pro forma revenue growth in the UK.
Operating profits were up 15% in the half to 27 March 2026, and despite a “busy period” of integration service levels were maintained above 99%.
Revenues hit £1.3bn in the period, driven in part by an 0.8% increase in volume/mix, which Greencore claimed beat the wider market.
“The combined business is in a great place, and I remain incredibly excited for Greencore’s future,” said Greencore CEO Dalton Philips.
“The integration of Bakkavor is progressing well and to plan - and we are focused on bringing our 4,000-plus product portfolio and enhanced capabilities to our customers.”
Philips added the group was “firmly on track” to deliver annual cost synergies of “at least” £80m through the merger.
The sale of Bakkavor’s US assets, headquartered in North Carolina, would return Greencore’s focus to the UK. Greencore had previously exited the US in 2018, and in mid-2025 completed its exit from China after 20 years in the country.
House broker Shore Capital’s analyst Darren Shirley called the morning’s statement an “important threshold”, with the higher than 99% service levels an “outstanding albeit necessary achievement”.
”We are pleased to see the early days of the combined Greencore-Bakkavor going well, and to plan, service levels are being maintained at a fabulous rate, and we look forward to ongoing execution of a substantial integration programme with all that follows.”
No comments yet