Greencore Group plc has reported revenue growth for the fourth quarter – up by 3.7%, year on year – based on a strong focus on improving returns across its portfolio.
The UK convenience food manufacturer reported on the results for the quarter ending 27 September 2024, ahead of the full-year results on 3 December 2024.
As a result of Q4’s increase in revenue, the group expects to report revenue of £1.8 billion for the 2024 financial year.
Greencore’s like-for-like revenue growth was similarly up by 3.4%.
Despite challenging seasonal encounters, such as poor weather, almost all categories experienced some like-for-like growth as a result of continued focus on improving returns, commercial initiatives, and enhancing operational efficiency for key areas, such as labour and waste.
As a result, profit conversion for Q4 was ahead of expectations, and Greencore reportedly now expects its FY24 adjusted operating profit to beat market expectations in the range of £95 million to £97 million.
The group’s technology transformation programme – now well established – has impacted approximately £2.5 million in costs for the second half of the financial year.
These costs, directly related to that project, will be treated as an exceptional item, rather than an operating expense.
Net debt for the company – excluding lease liabilities – is approximately £148 million, down from £154 million in the 2023 financial year.
Following the commitment to return £50 million to shareholders in May 2024, the company has extended its current share buy-back programme by a further £10 million, to an aggregate value of up to £40 million, as announced on 29 August.
‘Rebuilding Our Profitability’
Speaking about the results, the chief executive of Greencore, Dalton Philips, said, “The Greencore team delivered an outstanding performance, with our FY24 results now expected to exceed current market expectations.
“Providing high-quality, fresh and healthy food to our customers every day is at the heart of what we do.
“To all our colleagues who work tirelessly to make this happen, I would like to say a huge thank-you!
“As we enter our new financial year, our focus remains on making really great food, rebuilding our profitability, and positioning Greencore to be the UK’s leading convenience foods manufacturer.
“We’ll share more detail at our FY24 results in early December and will use our Capital Markets Day in early 2025 to outline our medium-term growth strategy.”
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