The Irish convenience foods giant is revelling in what is set to be a bumper finish to its 2026 financial year, with fourth-quarter trading showing volume growth tracking ahead of the wider grocery market.
Supported by growing profit margins and cashflow momentum, Greencore said it now expects FY26 adjusted operating profit of around £248 million for its UK business, which the firm said is ahead of current market expectations and above previously raised guidance.
The group also praised the delivery of synergies from the integration of longtime rival Bakkavor, which has “continued to progress strongly”, as revenues increased 4.5% in the fourth quarter to 25 September to £1 billion.
Greencore added that innovation remained key to its strong performance in 2026, having launched 167 new products during the quarter alone.
This included two ranges of premium Italian ready meals, new summer-focused grab-and-go sandwich and salad ranges, and a range of limited-edition diner-style mac and cheese products.
Greencore chief executive Dalton Philips said: “Greencore has had a monumental year, and we finished it with a strong performance in Q4.
“We grew volume ahead of the market, drove strong profit growth and we continue to make strides in our integration with Bakkavor. That performance means we are in a position to further upgrade our full year guidance.”
He added: “Our focus in FY27 remains simple: producing high-quality, innovative fresh food, ensuring we deliver for our customers and progressing our ambitions for our larger business.”
Across the business, full-year pro forma revenues increased 3.6% to £3.38 billion, while manufactured volumes grew 2.1% in Q4, outperforming grocery market growth of 0.5%, with chilled categories including salads, dips, quiche and sandwiches performing strongly.
Greencore said both its legacy business and Bakkavor “outperformed the market” during the period, bringing a strong year of volume growth to a close. FY26 manufactured volume increased 1.1%, ahead of the wider market growth rate of 0.5%.
Petrina-Oana Carcota, consumer products analyst at Bloomberg Intelligence, added: “Greencore’s full-year fiscal 2026 adjusted operating profit, now seen at about £248 million, validates our thesis that earnings upside from the Bakkavor acquisition was underestimated by the market.
“4Q pro forma revenue rose 4.5%, while manufactured volume increased 2.1% vs. 0.5% for the market, helping ease concern about subdued grocery demand.
“Positive 1Q trading, continued volume momentum and another 75 bps of annualised cross-selling wins should support fiscal 2027 upside as Bakkavor synergies build. Valuation still looks at odds relative to the earnings-growth profile given a 12.6x one-year forward P/E, a 16% discount to peers, and 0.9x 2026-29 PEG versus 1.9x for the packaged food sector.”
