Convenience food manufacturer Greencore has published its trading update for the 13 weeks ended 28th June 2024 (Q3).

Greencore reported a revenue decrease of 6.1% to £465.2 million, which it said reflected 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 basis, Q3 revenues increased 1.4% year on year.

Revenue in Food to Go categories decreased 1.5% to £330.2 million, an increase of 2.4% on a like-for-like basis.

The manufacturer said it had achieved a “strong financial and operational performance”, which it said was underpinned by “outstanding customer service levels of 99.4%”.

Trading outlook

Greencore stated that it expected its FY24 adjusted operating profit to be in a range of £88-90 million. This is ahead of prior guidance of £86-88 million, and ahead of current market expectations.

Dalton Philips, chief executive officer, said: “Q3 represents another excellent performance by the business against a tough comparative period. Our continued progress has been delivered through ongoing impactful operational and commercial initiatives, which we are continuing to implement at pace, supporting the improved profit conversion in the quarter.

“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%. Delivering at this level alongside ongoing business improvement is not easy, and I would like to thank my colleagues across the Group for their hard work.

“While Q4 remains a seasonally important trading period, our continued strong profit conversion performance means we now expect to deliver a full year adjusted operating profit of £88-90 million, ahead of previous guidance and market expectations.”