Greencore shares are up 10% this morning after it raised its annual profit outlook due to a summer boost.
The food-to-go manufacturer saw revenue rise 9.9% to £511.1m in the 13 weeks to 27 June, supported by favourable summer weather, new business wins and average price hikes of 3.1%.
Volumes also rose by 1.9% with the most encouraging growth seen in sandwiches, sushi and ready meals.
The strong volume momentum pushed profits higher than expected, with the group raising its forecast for full-year operating profits to £118m-£121m, up from a previous range of £114m-£117m.
The performance impressed both shareholders and analysts, with RBC analyst Tania Maciver noting: “Management’s increased outlook again underscores the rigorous focus on innovation, customer service and cost containment.”
Greencore’s acquisition of Bakkavor continues to progress after it received approval from both sets of shareholders earlier this month. The company now expects the deal to complete in early 2026, subject to regulatory approval, particularly from the UK’s Competition & Markets Authority.
“The Greencore team has delivered another outstanding performance in Q3, with particularly strong volume momentum, aided by favourable summer weather and new business wins,” said CEO Dalton Philips.
“As we enter our seasonally-important Q4, our focus remains on maintaining momentum in our business.
“We look forward to completing the value-creating acquisition of Bakkavor in early 2026, subject to regulatory approval, and will continue to update on progress in due course.”
Greencore has prioritised innovation as a major focus and launched 168 new products last quarter in time for the peak summer season. These included a Japanese-inspired strawberry and creme sandwich and a range of poke bowls.
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