Food manufacturer Greencore Group Plc has published its results for the 52-week period ended 27th September 2024, reporting a “stronger than expected” performance.
Group revenue reached £1,807.1 million, down 5.6% from the FY23 total of £1,913.7 million. However, the group operating profit was £84.3 million, up 27.7% from its previous £66 million.
Revenue in the Group’s Food to Go categories (comprising sandwiches, salads, sushi and chilled snacking) totalled £1,244.6 million and accounted for approximately 69% of Group revenue.
Revenue decreased by £8 million in these categories, as like-for-like volume growth (including mix), inflation recovery and pricing impacts were offset by the proactive decision to exit a number of low margin contracts in FY23.
Like-for-like revenue growth across the Food to Go category was 4.0% in the period. The Group experienced like-for-like volume growth of 1.4% across the Food to Go sandwiches category, outperforming the wider market, however there were weaker performances in the Food to Go salads and the own label sushi categories.
The Group’s Other Convenience categories comprise chilled ready meals, chilled soups and sauces, chilled quiche, ambient sauces, pickles and frozen Yorkshire Pudding categories. Revenue across these categories decreased by 14.9% to £562.5 million in FY24.
Revenue growth across the Other Convenience category was 2.2% in the period. The Group said it achieved a “strong” volume performance in the chilled ready meals category, increasing 1.6% and outperforming the wider market. This was in addition to a strong volume performance across ambient sauces, chilled soups and sauces, and frozen Yorkshire Pudding categories.
“Looking ahead, we expect adjusted operating profit for FY25 to be within the top half of the range of current market expectations.”
Dalton Philips, Greencore chief executive officer, said: “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. I would like to thank all our Greencore colleagues whose continued dedication has enabled us to deliver these results.
“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.
“The Group has maintained its strong financial discipline, with leverage reduced to 1.0x, while also returning a further £40 million to shareholders and announcing an additional share buyback. I am also delighted that today marks a return to Greencore paying dividends. 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.
“Looking ahead, we expect Adjusted Operating Profit for FY25 to be within the top half of the range of current market expectations and we’ll share more detail on our medium-term growth strategy at our Capital Markets Day in February.”
