Convenience food firm Greencore Group has raised its full-year guidance after delivering what it described as a 'strong financial and operational performance' in the third quarter of its financial year.
Greencore expects adjusted operating profit to range between £88 million to £90 million (€104.65 million to €107.03 million) – up from its previous forecast of £86 million to £88 million (€102.27 million to €104.65 million), exceeding current market expectations, it said in a trading update.
The company attributed its good performance to improved customer service and consistent year-on-year improvement in profit conversion.
Dalton Philips, chief executive officer of Greencore, added, “Q3 represents another excellent performance by the business against a tough comparative period.
“Our continued progress has been delivered through ongoing impactful operational and commercial initiatives, which we are continuing to implement at pace, supporting the improved profit conversion in the quarter.”
Greencore's like-for-like revenue in the third quarter increased 1.4% year on year.
However, reported revenue declined 6.1%, to £465.2 million (€553.23 million), following the exit from several low-margin contracts in its 2023 financial year and the sale of the Trilby Trading business.
Quarterly Highlights
In the food-to-go category, reported revenue fell 1.5% to £330.2 million (€392.7 million), while like-for-like revenue increased 2.4%.
Other convenience categories witnessed a 15.7% year-on-year decline in reported revenue, to £135.0 million (€160.54 million). On a like-for-like basis, this represented a 1.1% decrease, the company noted.
In the sandwich category, the group reported a flat like-for-like volume performance compared to an overall market decline of 1%.
The company recently launched several premium food-to-go ranges, including a revamped premium range of sushi and the third phase of the group’s ongoing programme of a premium product offering for a material customer.
Greencore also launched a new range of cooking sauces across standard and premium tiers, and was recently awarded an 'Innovation Supplier of the Year' award.
