UK's Greencore H1 profit rises 15% on cost savings
UK's Greencore H1 profit rises 15% on cost savings
Overview
UK fresh convenience food maker's H1 pro forma revenue grew 3.2%, pro forma adjusted operating profit up 15%
Adjusted EPS for H1 rose 31% year-on-year
Profit growth driven by cost management and operational efficiencies amid Bakkavor integration
Outlook
Company says trading in Q3 has remained robust, lapping a strong 2025 summer season
Greencore expects adjusted operating profit in line with current market expectations
Greencore on track to deliver at least £80m in annual cost synergies
Result Drivers
COST MANAGEMENT & EFFICIENCY - Profit growth attributed to disciplined cost management and efficiency savings from operational excellence programmes
INFLATION RECOVERY & PRICING - Revenue growth supported by inflation recovery and price increases, with volume and mix contributing modestly
SUBDUED MARKET CONDITIONS - Volumes held up in a subdued market, with legacy Greencore volume ahead of a flat grocery market, while legacy Bakkavor UK volume declined
Company press release: ID:nRSa7812Fa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue | Miss | GBP 1.32 bln | GBP 1.42 bln (1 Analyst) |
H1 Adjusted EBITDA |
| GBP 111.20 mln |
|
H1 Adjusted EBIT | Miss | GBP 73.30 mln | GBP 112.60 mln (1 Analyst) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the food processing peer group is "buy"
Wall Street's median 12-month price target for Greencore Group PLC is GBp320.00, about 33.6% above its May 26 closing price of GBp239.60
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 15 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)