Greencore Group

Supermarket bosses are calling for Andy Burnham to set legally binding targets to increase the proportion of fruit and vegetables grown in Britain by 2040. The chief executives of Tesco, Waitrose, Sainsbury's, Aldi and the Co-op have written to the Prime Minister warning that wildfires and extreme weather are putting Britain's food supplies at risk. At least half of the nation's imported fruit and vegetables currently come from countries facing extreme water scarcity, the bosses warned. The letter, drafted by the Food Foundation and signed by more than 100 organisations including Danone and Greencore, urges the introduction of a good food bill that would require local authorities to plan for continued food supplies during extreme weather and mandate consideration of food security across government decisions. It also calls for legally binding targets on reducing childhood obesity and increasing children's fruit and vegetable consumption.

Greencore has raised its forecast for annual adjusted operating profit from continuing operations to a range of £234 million to £242 million, above current market expectations, after reporting volume growth that outpaced the wider grocery market in its fiscal third quarter. Group revenue on a pro-forma basis reached £1.02 billion in the 13 weeks ended 26 June, up 3.2% year on year, with volume and mix contributing 2.3 percentage points of growth and price and inflation recovery adding 0.9 points. The company said underlying profit momentum at both the legacy Greencore and recently acquired Bakkavor businesses was ahead of expectations, supported by growing volumes, improved margins and cost control. The acquisition of Bakkavor created a combined private-label food business with roughly £4 billion in revenue, supplying major supermarkets including Tesco, Sainsbury's, Asda, Waitrose and Marks & Spencer. Greencore shares surged 11.6% in morning trading following the update, and the company noted that fourth-quarter trading has started positively with continued volume momentum and early cross-selling progress.