Greencore raises annual profit forecast on volume growth ahead of market

Earnings

โดย Just Food·Read original

Summary · why it matters

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.

Greencore Group ▲