Adjusted Operating Profit anticipated to be ahead of current market expectations
Greencore Group plc (‘Greencore’ or the ‘Group’), a leading manufacturer of convenience foods in the UK, today issues a trading update for Q4 and the full year ended 29 September 2023, ahead of the publication of its full year results on 28 November 2023.
|Revenue Growth (versus FY22)|
|Reported||Pro Forma(1)||Reported||Pro Forma(1)|
|Food to go categories||3%||3%||8%||10%|
|Other convenience categories||(1%)||6%||14%||22%|
1 Pro Forma Revenue Growth (versus FY22) adjusts reported revenue to exclude the additional week of trading in the FY22 accounting period. It also adjusts reported revenue in FY22 and FY23 to reflect the disposal of Trilby Trading Limited.
Group pro-forma revenue was 4% up year on year in Q4, with FY23 Group pro-forma revenue growth of 13%.
For FY23 the Group anticipates Adjusted Operating profit will be ahead of current market expectations and in a range of approximately £74m-£76m.
Net Debt (excluding lease liabilities) is estimated to be approximately £155m (FY22: £180m) at year end, after approximately £36m capital expenditure and completion of a further share buyback. Net Debt:EBITDA, as measured under financing agreements, will be within the Group’s medium term target range of 1.0x – 1.5x.
In total, £35m has been returned to shareholders to date since the Group announced a recommencement of a value return to shareholders in May 2022. It is intended that a further £15m will be returned to shareholders in due course in the form of an additional share buyback programme and as part of the wider commitment to return £50m to shareholders by May 2024.
Further to the announcement on 28 July 2023, the sale of Trilby Trading Limited was completed on 29 September 2023 post the approval of relevant anti-trust authorities and customary closing conditions.
2 Consensus FY23 market expectations of mean Adjusted Operating Profit of £70.1m, as compiled by Greencore from available analyst estimates on 09 October 2023 and as reported in the Investor Relations section of the Group website.
Dalton Philips, Chief Executive Officer, said:
“The Greencore team has delivered a strong second half performance in what was a difficult seasonal comparative period and against the backdrop of inflation and a challenging consumer environment. We continue to drive operational improvements across the business underpinned by our commitment to quality and customer service. While macro-economic uncertainty remains, we are pleased with the expected FY23 outcome and are committed to driving an improved financial performance in the period ahead.”
The person responsible for making this announcement is Jonathan Solesbury, Interim Chief Financial Officer.
Greencore will report its FY23 results for the year ending 29 September 2023 on 28 November 2023.