Greencore Shares Rally: Raises FY25 Profit Outlook on Strong Revenue Growth

Greencore Group plc (LON: GNR), a leading UK convenience food manufacturer, saw its share price rise on Wednesday after it upgraded its full-year adjusted operating profit guidance following a robust fourth quarter and a strong overall fiscal year 2025 performance.

Revenue for both the fourth quarter and the full year grew by 8% compared to FY24. Food-to-go categories, including sandwiches and sushi, led the charge with a 9% increase in Q4 and 8% for the full year.

The Group now anticipates reporting FY25 revenue of approximately £1.95 billion.

Underlying volume growth, excluding new business wins, increased by 1%, adding evidence of the company's continued growth in market share.

Profit conversion during Q4 exceeded expectations, driven by strong volume momentum and a focus on cost management through the Group's excellence initiatives.

The company has also made strides in strengthening its balance sheet. Net debt, excluding lease liabilities, is expected to be approximately £70 million, a significant reduction from £148 million in FY24.

The resulting Net Debt to EBITDA ratio is now well below the medium-term target range of 1.0x – 1.5x, as measured under financing agreements.

As a result of this strong performance, Greencore now anticipates FY25 Adjusted Operating Profit will be approximately £125 million, surpassing previous guidance of £118-121 million.

Meanwhile, Greencore also said it is also progressing with its proposed acquisition of Bakkavor Group plc, having received shareholder approval in July.

The Competition and Markets Authority has launched its merger inquiry, with a deadline of October 27 for its Phase 1 decision.

“We had another excellent quarter in Q4, which rounded out an exceptional year,” said Dalton Philips, GNC's CEO. “While there are wider economic headwinds, the strong performance means we are again upgrading our full year guidance.”