Strong trading momentum and volume growth; upgrade to full year guidance[1]
Greencore Group plc (‘Greencore’ or the ‘Group’), a leading manufacturer of convenience foods in the UK, today issues its trading update for the 13 weeks ended 27 June 2025 (“Q3” or “the quarter”).
| Revenue | Revenue Growth (versus FY24) | ||
| Q3 | Q3 | 9 months | |
| £m | Reported | Reported | |
| Group | 511.1 | +9.9% | +7.6% |
| Food to go categories | 360.7 | +9.2% | +6.9% |
| Other convenience categories | 150.4 | +11.4% | +9.2% |
PERFORMANCE:
- Greencore delivered a strong financial and operational performance in Q3 FY25, partnering closely with customers and maintaining an outstanding operational service level of 99.3%[2].
- Revenue momentum continued from the half year and was particularly strong in Q3, with revenue increasing 9.9% to £511.1m, supported by favourable summer weather and new business wins. This was driven by an increase in total volumes and mix of 6.8% and the positive impact of inflation recovery of 3.1%
- Overall manufactured volume grew 3.6% in Q3 and underlying volume growth was 1.9% (excluding new business wins), ahead of the wider grocery market growth of 0.7%[3]. Volume growth was encouraging across most categories, particularly in sandwiches, sushi and ready meals.
- Greencore continued to invest in product innovation during the quarter to support this growth, launching 168 new products in time for the peak summer season. These products included a Japanese-inspired strawberry and creme sandwich and a range of poke bowls.
- Operational excellence initiatives remained an important contributor to driving efficiencies, including ongoing best practice deployment focused on standardisation and waste reduction and the rollout of manufacturing automation.
- Greencore continued to invest for the future, with the Making Business Easier transformation further modernising the technology, data and processes of the Group.
- Profit conversion during Q3 was ahead of management’s expectations, driven by strong volume momentum and disciplined cost management through the Group’s excellence initiatives.
OUTLOOK:
- While Greencore remains cautious around the uncertain UK economic environment, alongside continued inflationary pressures, particularly in protein and labour, the Group now anticipates FY25 Adjusted Operating Profit will be in a range of £118-121m[1], ahead of previous guidance.
- The Group continues to progress with the proposed acquisition of Bakkavor Group plc and was pleased to receive approval for the transaction from both Greencore and Bakkavor shareholders in early July. We continue to expect completion of the transaction in early 2026, subject to regulatory approval, notably from the Competition & Markets Authority in the UK.
With the consent of Bakkavor Group plc, the UK Panel on Takeovers and Mergers has confirmed that the foregoing statement in relation to FY25 Adjusted Operating Profit (the “Profit Forecast”) constitutes an ordinary course profit forecast for the purposes of Note 2(b) to Rule 28.1 of the City Code on Takeovers and Mergers (the “Takeover Code”), to which the requirements of Rule 28.1(c)(i) of the Takeover Code apply. The additional disclosures required by the Takeover Code are set out in the Appendix to this announcement.
Dalton Philips, Chief Executive Officer
“The Greencore team has delivered another outstanding performance in Q3, with particularly strong volume momentum, aided by favourable summer weather and new business wins.
As a close strategic partner to our customers, I’m delighted with how we have been able to deliver market-leading convenience food innovation, strong service levels and products of the highest quality to our retail customers and their shoppers. I would like to thank our 13,300 colleagues, who work tirelessly to make this happen every day.
As we enter our seasonally-important Q4, our focus remains on maintaining momentum in our business. While we are mindful of an uncertain economic backdrop and ongoing inflationary pressures, we now expect to deliver a full year Adjusted Operating Profit of £118-121m, ahead of previous guidance.
We look forward to completing the value-creating acquisition of Bakkavor in early 2026, subject to regulatory approval, and will continue to update on progress in due course.”
Click here to download the full statement.
- Previous guidance communicated as part of H1 FY25 results on 15 May 2025 was FY25 Adjusted Operating Profit of £114-117m.
- Net operational service levels, measured as the number of on time and in full orders as a % of accepted customer orders.
- Kantar grocery market performance data for the 12-week period to 15 June 2025.
