Shares in Greencore soared to their highest level in over four years today, driven by the company’s optimistic forecast for annual profits. The convenience food manufacturer reported a nearly 7% increase in its stock value after announcing that its full-year adjusted operating profit is expected to exceed market expectations, reaching between £95 million and £97 million.
In a trading update for its fiscal fourth quarter and full year, Greencore attributed the positive outlook to its sustained efforts to improve returns across its portfolio. The company highlighted successful commercial initiatives and enhanced operational efficiency in critical areas, including labor and waste management throughout its network.
Greencore reported a 3.7% year-on-year growth in like-for-like revenue for the fourth quarter, contributing to a full-year revenue increase of 3.4%. The Dublin-headquartered firm, recognized as the largest pre-packed sandwich producer in the UK, anticipates reporting full-year revenues of approximately £1.8 billion.
The company also reaffirmed its commitment to returning £50 million to shareholders by May 2024. To support this initiative, Greencore has expanded its current share buyback program by an additional £10 million, raising the total buyback value to £40 million, as previously announced in August.
“The buyback is progressing well, and it remains the intention of the board to declare a dividend for FY24 as part of this capital return program,” Greencore stated.
Dalton Phillips, Greencore’s Chief Executive, praised the team’s outstanding performance, noting that the company’s FY24 results are now anticipated to surpass current market expectations. “Providing high-quality, fresh, and healthy food to our customers every day is at the heart of what we do,” he emphasized.
Looking ahead to the new financial year, Phillips expressed confidence in Greencore’s strategy. “Our focus remains on making really great food, rebuilding our profitability, and positioning Greencore to be the UK’s leading convenience foods manufacturer,” he said.
As the company continues to strengthen its market position, Greencore’s upbeat outlook and effective operational strategies have investors optimistic about its future performance in the convenience food sector.
