IN Brief:
- Greencore expects approximately £248 million in FY26 adjusted operating profit from its continuing UK operations, ahead of previous guidance.
- Manufactured volumes increased by 2.1% on a pro forma basis during the fourth quarter, compared with 0.5% across the wider grocery market.
- The enlarged group launched 167 products during the quarter and secured new business worth approximately £30 million in annualised revenue.
Greencore has increased its full-year profit guidance following stronger manufactured volume growth across its enlarged UK convenience food business, with the performance accompanied by further customer wins and progress integrating Bakkavor.
The company now expects adjusted operating profit from continuing UK operations of approximately £248 million for the financial year ended 25 September 2026. Its previous guidance was £234 million to £242 million, while the market consensus identified in the trading announcement stood at approximately £238 million.
Greencore recorded fourth-quarter pro forma revenue of £1.036 billion, an increase of 4.5%. The growth reflected higher manufactured volumes and the recovery of inflation affecting labour, packaging and certain raw materials, alongside improvements in operating margins.
Manufactured volumes increased by 2.1% during the quarter on a pro forma basis, compared with 0.5% growth across the wider grocery market. Both the established Greencore business and the acquired Bakkavor operations exceeded that market comparison, with salads, dips, quiche and sandwiches among the chilled categories performing strongly.
Across the full financial year, pro forma revenue increased by 3.6% to £3.378 billion, while manufactured volumes grew by 1.1%. The corresponding market growth figure was 0.5%, indicating that the enlarged manufacturer gained volume momentum beyond the overall expansion of the grocery market during the period.
Using pro forma measures allows the company to compare trading across the combined operations following the acquisition of Bakkavor. The distinction is relevant because the latest results reflect a business with a broader manufacturing and product portfolio than Greencore operated before the transaction.
New product development contributed to the fourth-quarter performance, with 167 products launched. These included premium Italian ready meals, summer sandwich and salad ranges, and limited-edition macaroni cheese products, extending the manufacturer’s presence across established chilled convenience categories.
The company did not disclose the sales or production volumes attributable to individual launches. The reported total demonstrates the extent of product introduction during the quarter, but cannot be translated directly into additional factory capacity or a measurable reduction in changeover time.
Further business secured through cross-selling across the enlarged customer base is expected to generate approximately £30 million in annualised revenue. The new contracts cover salads, ready meals, dips and breads, with product introductions scheduled for the second and third quarters of FY27.
These awards follow the first combined dessert contracts, which entered production during August 2026. The £30 million figure represents the approximate annual value of the newly secured business once operating at the assumed level, rather than revenue earned during the fourth quarter.
The additional contracts demonstrate how the Bakkavor acquisition has expanded the product categories Greencore can offer existing customers. Commercial opportunities that previously sat within separate businesses can now be assessed across a combined manufacturing portfolio, although the trading announcement does not identify the individual factories expected to handle the forthcoming orders.
Integration work has also progressed through central reorganisation, procurement and distribution. Greencore reported an encouraging start to those activities, alongside continued improvements from its operational efficiency programmes and the margin benefit of stronger production volumes.
The statement did not quantify the savings delivered by each integration measure or disclose changes in staffing, production lines or factory operating hours. Those details remain separate from the improvement in overall profitability reported for the enlarged group.
Chief executive Dalton Philips described the year as a period of substantial change for Greencore, during which the acquisition and integration were accompanied by stronger volumes and improved profitability. He said customers were seeking to expand their relationships with the combined business, supporting the additional contract wins across its product categories.
Greencore expects year-end net debt, excluding lease liabilities, of approximately £600 million, equivalent to around 1.8 times adjusted EBITDA. Its medium-term leverage target remains between 1.0 and 1.5 times, with the improved trading performance and cash generation contributing to balance sheet management following the acquisition.
The proposed sale of Greencore’s United States business is continuing. That operation is treated as a discontinued business and is excluded from the £248 million adjusted operating profit guidance, which relates to continuing UK activities.
Trading in the opening weeks of FY27 has been positive, with the company reporting continued volume momentum from the fourth quarter. The newly secured contracts are expected to enter production later in the financial year, while additional details of the latest performance and integration programme will be provided with the full-year results on 1 December 2026.
