Convenience foods manufacturer Greencore has upgraded its full-year outlook for FY24 following an “excellent performance” in Q3.
In its latest trading update, the sandwich specialist reported revenue of £465.2m for the 13 weeks ended 28 June 2024. This represents like-for-like growth of 1.4% but a 6.1% drop in reported revenue due to Greencore exiting several low margin contracts and selling Trilby Trading to KTC Edibles. It’s a trend which continues for the first nine months of the financial year which saw like-for-like revenue climb by 3.2% while reported revenue fell 6.3%.
Food-to-go categories for Q3 climbed by 2.4% on a like-for-like basis while reported revenue fell 1.5%. It saw a broadly flat like-for-like volume performance in the sandwich category, versus an overall market decline of 1%.
Following this performance, which included continued profit conversion through ongoing commercial and operational activities, Greencore upgraded its adjusted operating profit for the year.
“Q3 represents another excellent performance by the business against a tough comparative period,” said CEO Dalton Philips. “Our continued progress has been delivered through ongoing impactful operational and commercial initiatives, which we are continuing to implement at pace, supporting the improved profit conversion in the quarter.
“While Q4 remains a seasonally important trading period, our continued strong profit conversion performance means we now expect to deliver a full year Adjusted Operating Profit of £88-90m, ahead of previous guidance and market expectations,” Philips added.
Product launches in the quarter included a number of premium food to go ranges, including a revamped premium range of sushi and the third phase of the group’s ongoing programme of a premium product offering for a material customer.
Earlier this month investor Oasis Management increased its stake in Greencore to become the firm’s largest shareholder. The Hong Kong registered hedge fund moved from owning 5.2% of Greencore’s stock to 10%, which saw it replace Boston-based Polaris Capital Management at the top of the shareholders list.
No comments yet