Convenience food manufacturer Greencore Group, which supplies sandwiches, ready meals and deli products to supermarkets, has announced its financial results for the 52 week period ended Friday 29th September 2023.

Greencore recorded group revenue of £1,913 million, a 10% increase year-on-year (YoY). It’s adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was £132.8 million, a 4.6% increase from the previous year’s rate of £126.9 million.

The adjusted operating profit was up 5.7% to £76.3 million, while the adjusted operating margin decreased from 4.2% to 4% in 2023.

The company recorded “continued outstanding operational service levels of 98.5%”, and said that it had refocused its sustainability agenda. It boasted a new five year £350 million sustainability linked revolving credit facility providing “significant financial flexibility for future growth”.

Focusing on profitability

Commenting on the results, Dalton Philips, chief executive officer, said: “In a challenging market environment, we have stabilised the business, and made good strategic progress. The Group delivered above-market volume growth, despite exiting a number of low margin contracts. We also successfully mitigated and recovered the majority of our input cost inflation through effective operational and commercial initiatives.

“We are encouraged by our FY23 performance and the progress across the business. That performance is testament to the strength of our relationships with our customers and suppliers and, in particular, to the hard work and dedication of the entire Greencore team.”

Philips said: “The Group continues to focus on improving profitability and is investing in a number of initiatives focused on both optimising our network and our IT infrastructure, to give us the platform for future growth.

“Our stronger balance sheet provides the financial flexibility to underpin this growth. We are pleased with the start to the year and although it’s early days, the Group remains confident in delivering FY24 within the range of current market expectations.”