Greencore reports record €540.5m Q3 revenue

Greencore boosts its full-year profit forecast to €102-106 million, surpassing previous estimates
25 July 2024
Greencore Group plc (‘Greencore’ or the ‘Group’) reported record sales in its first half, according to the company’s latest financial statement.
The Group has recently issued its trading update for the 13 weeks ended 28 June 2024 (‘Q3’ or ‘the quarter’).
“Q3 represents another excellent performance by the business against a tough comparative period,” said Dalton Philips, chief executive officer, Greencore.
“Providing fresh and healthy foods to our customers and consumers each and every day is our core purpose, and our performance has once again been supported by our outstanding operational service levels, at over 99%.”
Philips notes that while Q4 remains a seasonally important trading period, Greencore’s continued strong profit conversion performance means they now expect to deliver a full year Adjusted Operating Profit of €102-104 million, ahead of previous guidance and market expectations[2].
Revenue results
Q3 FY24 reported revenue decreased by 6.1% to £465.2 million, reflecting the year on year impact of the exit by Greencore of a number of low margin contracts in FY23 and the disposal of the Trilby Trading business. On a Like for Like (LFL) basis [1], Q3 revenues increased 1.4% year on year.
Q3 FY24 reported revenue in Food to Go categories decreased 1.5% to €383.4 million, an increase of 2.4% on a LFL[1].
Q3 FY24 reported revenue in Other Convenience categories was €151.2 million, a 15.7% decrease year on year. On a LFL[1] basis this represented a 1.1% decrease.
The Group saw a broadly flat LFL volume[1] performance in the sandwich category, versus an overall market decline of 1%[3]. This was in addition to a positive LFL volume[1] performance across other key categories including chilled ready meals, and cooking sauce.
The sushi category also experienced LFL volume[1] growth in the quarter, however the salads category was more challenged.
Product launches
Product launches in the quarter included a number of 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.
In addition, the Group also launched a new range of cooking sauces across standard and premium tiers, for which the Group was awarded an “Innovation Supplier of the Year” award.
The Group also completed the consolidation of two soup manufacturing sites with the closure of the soup production facility at Kiveton.
The Group generated strong underlying free cash in Q3 FY24. The previously announced €34.8 million share buyback is ongoing and progressing well. As part of the previously announced €58 million return to shareholders, the Board also intends to declare a dividend for the year to September 2024.
Outlook
The Group currently expects FY24 Adjusted Operating Profit to be in a range of €102-106 million, ahead of prior guidance of €101-105 million and ahead of current market expectations[2].
Greencore will report its FY24 results for the year ending 27 September 2024 on 3 December 2024.
Read more: Greencore reports strong start to FY24 trading
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