The group reported revenues of £474.3m in the 13 weeks ended 27 December 2024, driven by an increase in volumes and mix – including the benefit of new business wins – of 4%. This was further bolstered by the positive impact of inflation recovered and price of 3.5%.
Food-to-go revenues grew 7.2% to £314.7m, with sandwich volumes up 2.5% year-on-year – versus a market performance of 2.4%. Sushi volumes grew 15.3% thanks to a new range with one of Greencore’s customers.
Reported revenue in other convenience categories was £159.6m, an 8.1% increase year-on-year, again driven by an increase in volumes and mix totalling 6.4% and the impact of inflation recovery and price (1.7%). Overall chilled ready meals volumes increased 23.5% year on year, driven by the onboarding of a significant new chilled ready meals contract.
Profits within expectations
Greencore said its profit conversion in the quarter continued to be strong and in line with its expectations. The manufacturer will report its FY25 first half results on 27 May 2025.
Commenting on the results, CEO Dalton Philips said: “The Group has made a positive start to FY25, and I am encouraged by the platform this provides us for the rest of the financial year.
“Our volume growth of 2.6% in the quarter again outperforms the market and is driven by both underlying volume growth and winning new business. This reflects a combination of the quality of our products, our commitment to innovation and the strength of our relationships with our customers.”
Like many members of the food and drink manufacturing industry, Greencore continued to face an ‘unprecedented’ labour cost challenge from the National Living Wage and National Insurance increases set out in the UK budget.
Offsetting costs
To offset these costs, the manufacturer said it was continuing its investment in automation, operational excellence, labour planning and technology – commitments it had made in its end of year update.
“We continue to make progress against each of our strategic objectives and are well positioned to continue this momentum through FY25,” Philips added. “We continue to remain focused on making high quality food, enhancing our profitability, and strengthening our position as the UK’s leading convenience foods manufacturer. I would like to thank all our brilliant colleagues for their continued support and commitment which enables us to deliver for our customers, consumers and our shareholders.
“We have delivered a strong Q1 and are confident that we will deliver a full year performance in line with current market expectations. We will share more detail on our medium-term growth strategy at our Capital Markets Event in February.”
