Greencore has reported a 7.5% revenue lift for the first quarter of its 2025 financial year, adding that it expects its 2025 results to be in line with market expectations.
According to the results – which cover the 13 weeks ending 27 December 2024 – an increase in volumes of 4.0% and the positive impact of inflation recovery primarily drove the revenue increase to £474.3 million.
On a like-for-like basis, revenue grew at 4.9%.
Total volumes for the period increased 2.6% due to underlying volume growth, supplemented by new business won during the previous financial year.
This was above an overall market performance of 0.5%.
Greencore was positive about this result, as it reflected customer loyalty in a time of increased cost-of-living pressures.
Products
In food-to-go categories, Greencore reported that overall sandwich volumes increased 2.5% year on year, while sushi continued its positive momentum with growth of 15.3% year on year.
The group also said it will continue to broaden its product range after launching 102 new products across the festive season, to strong results.
However, Greencore noted that it will face challenges during the year as the Labour government’s new social security charges and increased wages add to the company’s “unprecedented labour cost challenge.”
To counter this, the UK’s biggest pre-packed sandwich maker hopes to focus on manufacturing automation, operational excellence, labour planning and technology investment, as well as its usual inflation recovery measures.
‘Well-Positioned’
Speaking about the results, chief executive officer of Greencore Dalton Philips said, “The Group has made a positive start to FY2025, and I am encouraged by the platform this provides us for the rest of the financial year.
“Our volume growth of 2.6% in the quarter again outperforms the market and is driven by both underlying volume growth and winning new business.
“This reflects a combination of the quality of our products, our commitment to innovation and the strength of our relationships with our customers.
“We continue to make progress against each of our strategic objectives and are well-positioned to continue this momentum through FY25.
“We continue to remain focused on making high-quality food, enhancing our profitability, and strengthening our position as the UK’s leading convenience foods manufacturer.
“I would like to thank all our brilliant colleagues for their continued support and commitment which enables us to deliver for our customers, consumers and our shareholders.
“We have delivered a strong Q1 and are confident that we will deliver a full year performance in line with current market expectations.
“We will share more detail on our medium-term growth strategy at our Capital Markets Event in February.”
Greencore will release its first-half results for the 2025 financial year on 27 May 2025.
