Food manufacturer Greencore has reported a "stronger than expected" trading year as the company, known for producing meal deals for retailers such as M&S and Waitrose, sees a significant rebound in profitability with an eye on 2025.
The Irish firm informed the market this morning that its like-for-like sales surged from 29.7% to 33.2% in the year ending 28 September, 2024, as reported by .
The company's adjusted operating profit soared by 27.8% to £97 million, bolstered by a series of customer contract renewals which are set to establish a "solid multi-year platform". Additionally, Greencore's adjusted EBITDA witnessed a 15.7% increase.
Greencore's CEO Dalton Philips commented on the robust performance, acknowledging it came during a time "defined by cost inflation and muted consumer confidence". Philips elaborated: "Over the last 12 months we have remained focused on making high quality food, rebuilding our profitability, and positioning Greencore to be known as the º£½ÇÊÓƵ’s leading convenience foods manufacturer."
"We continue to make progress against each of our strategic objectives and are well positioned to continue this momentum in FY25 and over the longer term."
In a move reflecting confidence in its financial health, the group has also returned £40 million to shareholders and declared an additional £10 million share buyback.
The company stated that its robust balance sheet will facilitate investment "in the growth and efficiency of our business and to pursue M&A opportunities on a selective basis, while also enabling us to deliver increasing returns to shareholders."
Looking ahead, Greencore expects its adjusted operating profit in the upcoming year to fall within the higher half of market expectations.
