Greencore’s revenue grew by 43% for the half year ended 27 March 2026. However, this growth was largely driven by the £1.5 billion acquisition of Bakkavor.
While core UK performance for the group is not outstanding, the unaudited results show solid growth with pro forma revenue of £1.32 billion (+3.2%) and pro forma adjusted operating profit of £73.3 million (+15.3%).
Margin is up 60bps (at 5.6%), reflecting improved efficiency fuelled by the 870+ operational excellence and automation projects live during the first half of the year.
Revenue growth was mostly driven by pricing and inflation recovery, representing 2.4%. Volume and mix meanwhile added a more modest 0.8%. This signals a market where demand remains stable but organic growth is limited, with performance becoming more dependent on price and operational execution.
Bakkavor integration
Although Greencore’s underlying business delivered double-digit profit growth, the costs of integrating Bakkavor have meant the group saw a loss in operating profits. Figures slid from £38.1 million profit in H1 25 to a £13.4 million loss.
The balance sheet highlights the near-term financial pressure on the group, mostly due to the cost of the acquisition. Free cash flow fell to negative £76 million and net debt hiked upwards, reaching £817.6 million - an increase of £681.4 million compared to the end of H1 25.
Still, the Bakkavor integration has gone smoothly. CEO Dalton Philips, said it’s “progressing well and to plan” with the business on track to reach its target £80 million of annual cost synergies within three years.
The group now has 28,000 employees and more than 4,000 products in its portfolio.
Operational performance also held strong during the acquisition, with 308 new product launches and service levels maintained around 99%. Launches included a ‘Yorkshire Pudding’ Christmas seasonal wrap, new ranges of summer dips and deli products, and health-focused meals. The business also struck a new partnership with sports nutrition brand Myprotein, introducing a selection of protein-enriched salads and wraps.
Looking at volume performance, the legacy Greencore business saw growth of 0.3% for H1 26, outpacing a flat grocery market over the same period. Meanwhile, for a brief ten-week period following the acquisition, volumes declined in the legacy Bakkavor UK business by 1.3%.
This was partially due to lapping of minor business exits from last year, against a grocery market decline of 0.2%. In particular, sandwiches, sushi and pizza all performed strongly over the period.
Possible sale for US division
The results also signal the potential sale of the group’s US division despite strong performance. This reflects a simplification of the business’s portfolio as it looks to cement itself further in the UK market.
Philips says the business continues to “monitor macro developments and inflationary impacts from the events in the Middle East” but remains “confident in the short-term mitigations” it has in place and business outlook.
