Greencore has upgraded estimates for its full year operating profits, after a hot summer helped boost volumes ahead of the market.
Pro-forma volume growth accelerated to 0.7%, ahead of the 0.4% decline in the wider grocery market, as bread, dips, pizza, quiche and sushi benefited from summer picnics and home football screenings.
Greencore revenues accordingly swelled to £1bn after finding 3.2% growth in the 13 weeks to 26 June 2026, Greencore told investors this morning.
The prepared food giant upgraded its full-year operating profit guidance to £234-£242m, excluding its US division, which is accounted for separately while held for sale. Previous guidance, which included the profitable US business, had estimated the group would take £232m in operating profit.
CEO Dalton Philips called the profit growth “excellent”, especially against Q3 2025’s “robust” performance.
“We continue to deliver for our customers, supporting them through the busy summer period and helping them drive growth through product innovation,” he said.
“Greencore has never been stronger, and I’m really encouraged by what the enlarged business is starting to achieve. Customers want to grow their business with us, our integration is fully on track, and we have made a fast start on synergy delivery.”
The implementation of a combined organisational structure has driven efficiencies, the company said, with duplicated roles in central functions removed in April and further changes managed by a dedicated integration office.
The company added it has made a “fast start” in procurement synergies, and remained confident in estimates of £15m cost synergies for the year, rising to £80m annually by 2029.
House broker Shore Capital’s analyst Darren Shirley called the quarter’s trading “particularly pleasing”.
“[It was] aided by seasonal factors, for example more sunshine and the FIFA World Cup), but also a strong assortment, excellent customer relations, and high service levels, which mean volume and mix growth,” he said.
“To us, Greencore equity was treated harshly in spring 2026, which makes this Q3 update an excellent opportunity to buy into an investment thesis that has some way to positively run.”
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