The convenience foods manufacturer confirmed that it now anticipates operating profit for FY25 will be ahead of current market expectations and in the range of £112 million to £115 million.
This was an increase on the previous estimate of profits in the £102.6 million to £107 million range.
Greencore noted that the upgraded guidance does not take into account any effects of a possible deal to acquire Bakkavor. It was reported last week that Greencore had made a third takeover offer, although both parties declined to comment when approached by Food Manufacture
During Q2, which ended on 28 March, the firm saw “strong revenue and volume momentum” continue from Q1, with profit conversion ahead of management’s expectations.
This was underpinned by ongoing operational and commercial efficiency initiatives and a continued focus on cost control.
Greencore will publish its half year results on 27 May 2025.
During Q1, the group reported revenues of £474.3 million driven by an increase in volumes and mix of 4%, further bolstered by prices increases of 3.5%.
Food-to-go revenues alone grew by 7.2% to £314.7 million, with sandwich volumes up 2.5% year-on-year. Meanwhile, sushi volumes grew 15.3% thanks to a new range with one of its customers.
Headquartered in Dublin, Greencore is a convenience food manufacturer that supplies all major supermarkets in the UK with products including sandwiches, salads, sushi, soups and sauces.
Bakkavor bids
While no formal announcement has been made about a reported third bid, it is known that Bakkavor rejected Greencore’s first two offers, the second of which valued Bakkavor at approximately £1.14 billion.
“Greencore believes the revised proposal provides a highly compelling value creation opportunity for both Bakkavor and Greencore shareholders,” the firm said after the second offer was submitted.
However, this offer was rebuffed unanimously by the Bakkavor board, with a spokesperson stating that it “significantly undervalued the company and its future prospects”.
