REG - Greencore Group PLC - Trading Update

GreencoreAnnouncement

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RNS Number : 4558C  Greencore Group PLC  08 October 2025

8 October 2025

 

Greencore Group plc ('Greencore' or the 'Group'), a leading manufacturer of
convenience foods in the UK, issues its trading update for the fourth quarter
("Q4" or the "quarter") and full year ("FY25") ended 26 September 2025, ahead
of publication of its FY25 results on 18 November 2025.

 

                                    Revenue Growth (versus FY24)
                                    Q4               12 months
                                    Reported         Reported
 Group                              +8%              +8%
    Food to go categories           +9%              +8%
    Other convenience categories    +6%              +8%

 

 

PERFORMANCE:

·      With another strong quarter in Q4, Greencore concludes an
excellent year, with continued progress against its strategy and consistent
delivery for customers (99% operational service levels for Q4 and FY25( 2 )).

 

·      Revenue growth experienced throughout the year continued into Q4,
driven by new business wins, new product innovation and favourable weather.
The Group now expects to report FY25 revenue of approximately £1.95b.

 

·      Volume momentum continued into Q4, particularly food-to-go
categories such as sandwiches and sushi. This brings to a close a year of
robust volume growth, with FY25 manufactured volume growing approximately 3%
and underlying volume growing 1% (excluding new business wins).

 

·      Product innovation was a strong contributor to growth. 130 new
products were launched during Q4, including a range of hot and cold food to go
products for a new store format, an elevated mac and cheese range and premium
cooking sauces.

 

·      Profit conversion during Q4 was ahead of expectations. This
performance was driven by strong volume momentum and a focus on cost
management through the Group's excellence initiatives, including reducing
waste and ensuring effective use of labour at sites.

 

·      The Group continues to drive strong cashflow and strengthen its
balance sheet. Net Debt (excluding lease liabilities) is expected to be
approximately £70m (FY24: £148m), with Net Debt to EBITDA well below the
medium-term target range of 1.0x - 1.5x (as measured under financing
agreements).

 

OUTLOOK:

·      As a result of this strong performance, the Group now anticipates
FY25 Adjusted Operating Profit will be approximately £125m, above previous
guidance( 1 ).

 

·      The Group continues to progress with the proposed acquisition of
Bakkavor Group plc, after approval was received for the transaction from both
Greencore and Bakkavor shareholders in July. As anticipated, the Competition
and Markets Authority announced the launch of its merger inquiry, with a
deadline of 27 October for its Phase 1 decision.

 

·      Greencore expects to report its FY25 results on 18 November 2025.

 

With the consent of the Bakkavor Group plc, the UK Panel on Takeover and
Mergers has confirmed that the foregoing statement in relation to FY25
Adjusted Operating Profit (the "Profit Estimate") constitutes an ordinary
course profit forecast for the purposes of Note 2(b) to Rule 28.1 of the City
Code on Takeovers and Mergers (the "Takeover Code"), to which the requirements
of Rule 28.1(c)(i) of the Takeover Code apply. The additional disclosures
required by the Takeover Code are set out in the Appendix to this
announcement.

 

___________________________________________________

1. Previous guidance communicated as part of the Q3 Trading Statement on 22
July 2025 was FY25 Adjusted Operating Profit of £118-121m. For reference,
company compiled consensus as at 6 October 2025 for FY25 Adjusted Operating
Profit was a range of £119.5m to £121.8m.

2 Net operational service levels, measured as the number of on time and in
full orders as a % of accepted customer orders.

 

"We had another excellent quarter in Q4, which rounded out an exceptional
year. I am proud of the Greencore team for the passion and commitment they
bring each day, allowing us to deliver for our customers. While there are
wider economic headwinds, the strong performance means we are again upgrading
our full year guidance.

 

Our focus in the new financial year remains on producing high-quality, fresh
food for consumers across the UK. 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."

 

For further information, please contact:

 Dalton Philips     Chief Executive Officer               Tel: +353 (0) 1 605 1000
 Catherine Gubbins  Chief Financial Officer               Tel: +353 (0) 1 605 1000
 Colm Farrell       Strategic Planning & IR Director      Tel: +353 (0) 1 605 1000
 Jonathan Neilan    FTI Consulting                        Tel: +353 (0) 86 231 4135
 Nick Hasell        FTI Consulting                        Tel: +44 (0) 203 727 1340

 

Forward‐looking statements

 

Certain statements made in this document are, or may be deemed to be,
forward‐looking.  These represent expectations for the Group's business,
and involve known and unknown risks and uncertainties, many of which are
beyond the Group's control.  The Group has based these forward‐looking
statements on current expectations and projections about future events based
on information currently available to the Group.  The forward-looking
statements contained in this document include statements relating to the
financial condition, results of operations, business, viability and future
performance of the Group and certain of the Group's plans and objectives.
These forward-looking statements include all statements that do not relate
only to historical or current facts and may generally, but not always, be
identified by the use of words such as 'will', 'aims', achieves',
'anticipates', 'continue', 'could', 'develop', 'should', 'expects', 'is
expected to', 'may', maintain', 'grow', 'estimates', 'ensure', 'believes',
'intends', 'projects', 'sustain', 'targets', or the negative thereof, or
similar future or conditional expressions, but their absence does not mean
that a statement is not forward-looking.

 

By their nature, forward-looking statements are prospective and involve risk
and uncertainty because they relate to events and depend on circumstances that
may or may not occur in the future and reflect the Group's current
expectations and assumptions as to such future events and circumstances that
may not prove accurate. A number of material factors could cause actual
results and developments to differ materially from those expressed or implied
by forward-looking statements. There may be risks and uncertainties that the
Group is unable to predict at this time or that the Group currently does not
expect to have a material adverse effect on its business. You should not place
undue reliance on any forward-looking statements. These forward-looking
statements are made as of the date of this announcement. The Group expressly
disclaims any obligation to publicly update or review these forward-looking
statements, whether as a result of new information, future events or
otherwise, other than as required by law.

 

About Greencore

 

We are a leading manufacturer of convenience foods in the UK and our purpose
is to make every day taste better. To help us achieve this we have a model
called The Greencore Way, which is built on the differentiators of Lasting
Partnerships, Great Food, Delivery Excellence, Sustainable Choices and People
at the Core - The Greencore Way describes both who we are and how we will
succeed.

 

We supply all of the major supermarkets in the UK. We also supply convenience
and travel retail outlets, discounters, coffee shops, foodservice and other
retailers. We have strong market positions in a range of categories including
sandwiches, salads, sushi, chilled snacking, chilled ready meals, chilled
soups and sauces, chilled quiche, ambient sauces, pickles and frozen Yorkshire
Puddings.

 

In FY24 we manufactured 748m sandwiches and other food to go products, 125m
chilled ready meals, and 204m bottles of cooking sauces, dips and table
sauces. We carry out more than 10,500 direct to store deliveries each day. We
have 16 world-class manufacturing sites and 17 distribution centres and
transport hubs in the UK, with industry-leading technology and supply chain
capabilities. We generated revenues of £1.8bn in FY24 and employ c.13,300
people. We are headquartered in Dublin, Ireland.

 

For further information go to www.greencore.com (http://www.greencore.com) or
follow Greencore on social media.

 

APPENDIX: RULE 28 OF THE TAKEOVER CODE

 

With the consent of Bakkavor Group plc, the UK Panel on Takeovers and Mergers
has confirmed that the Profit Estimate constitutes an ordinary course profit
forecast for the purposes of Note 2(b) to Rule 28.1 of the Takeover Code, to
which the requirements of Rule 28.1(c)(i) of the Takeover Code apply.

 

Directors' confirmation

 

The directors have considered the Profit Estimate and confirm that it remains
valid as at the date of this statement, has been properly compiled and the
basis of the accounting used is consistent with the Group's existing
accounting policies.

 

Basis of preparation

 

The Profit Estimate is based on the Group's current internal unaudited
consolidated accounts for the year ended 26 September 2025. The Profit
Estimate is not based on any assumptions. The basis of the accounting policies
used in the Profit Estimate is consistent with the existing accounting
policies of the Group, which uses 'Alternative Performance Measures' or other
non-International Financial Reporting Standards measures and then reconciles
such measures to International Financial Reporting Standards as approved by
the International Accounting Standards Board and adopted by the European
Union.

 

 

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