Greencore CEO Dalton Philips has praised “an exceptional year” for the sandwich maker as the group raised its annual profits guidance.
Volume growth of around 3% underpinned an 8% rise in revenues, bringing Greencore to an estimated £1.95bn in revenue over the year to 26 September 2025.
“We had another excellent quarter in Q4, which rounded out an exceptional year,” said Philips in the full-year trading update.
High volumes and a focus on cost management drove better-than-expected profit conversion in Q4, allowing the food manufacturer to upgrade its full-year guidance for adjusted operating profit for the fourth time this year, from the range of £118m-£121m to £125m.
The company attributed its strong performance to new business wins, product innovation, and favourable weather, with volume momentum particularly strong in sandwiches and sushi. Greencore launched 130 new products in Q4 alone. The company reported 99% operational service levels in 2025.
“I am proud of the Greencore team for the passion and commitment they bring each day, allowing us to deliver for our customers,” Philips added, noting the upgrade in guidance came despite “wider economic headwinds”.
Higher profits will help the company slash its net debt to an expected £70m in FY2025, down from £148m in 2024.
The results come ahead of Greencore’s slated merger with Bakkavor, with the Competition and Markets Authority expected to reach a decision on its phase one inquiry into the merger by 27 October.
“Our focus in the new financial year remains on producing high-quality, fresh food for consumers across the UK,” said Philips.
“We look forward to completing the Bakkavor transaction, subject to regulatory approval, and remain excited about the potential of combining two great UK food businesses, enhancing our product offering for our customers and UK consumers.”
RBC Capital Markets analyst Tania Maciver praised the company’s performance.
“Greencore once again delivered operating profit ahead of expectations and previous guidance for the fourth time this year,” she said.
“Disciplined cost management, efficiency improvement, and automation continue to support strong adjusted operating performance. We continue to believe there is upside potential in the transaction with Bakkavor and look for a positive phase one review by the CMA expected on or before 27 October.”
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