Convenience food group Greencore has reported what it described as a ‘stronger than expected’ full-year performance, seeing like-for-like revenue growth go up by 3.4% in the year to 27 September.
Adjusted EBITDA went up by 15.7%, to £153.7 million (€185.4 million), the group noted, with adjusted operating profit up by 27.8%.
Group revenue went down by 5.6%, however, with pro-forma revenue down by 1.4%.
Horizon 2
In a statement, Greencore noted that the ‘ongoing successful execution’ of Horizon 2, a strategy to return the group to pre-pandemic profit levels by 2026, has enabled the business to develop a ‘leaner, more agile and efficient operating platform.’
It noted a ‘significant labour cost headwind’ announced in the UK Budget, adding that it plans to offset this cost by the implementation of further efficiency initiatives over the coming year.
‘Excellent Progress’
“The group delivered excellent progress against its key financial metrics and strategic priorities in FY24, underpinned by close customer engagement in a period that continued to be defined by cost inflation and muted consumer confidence,” commented Dalton Philips, Greencore chief executive.
“Over the last 12 months, we have remained focused on making high-quality food, rebuilding our profitability, and positioning Greencore to be known as the UK’s leading convenience foods manufacturer. We continue to make progress against each of our strategic objectives and are well positioned to continue this momentum in FY25 and over the longer term.”
Looking ahead to the coming year, Greencore noted that it expects full-year 2025 operating profit to be within the top half of the range of current market expectations.
“The strength of our balance sheet will provide us with the ability to invest in the growth and efficiency of our business and to pursue M&A opportunities on a selective basis, while also enabling us to deliver increasing returns to shareholders,” Philips added.
Greencore is set to outline its medium-term growth strategy at its Capital Markets Day in February 2025.
