Greencore Shares Rally After Bumper Q3 Trading Update and Profit Upgrade

Greencore Group (LON: GNC) shares have jumped over 10% on Wednesday, trading around 244p, after the convenience food maker upgraded its full-year profit guidance on the back of a stronger-than-expected third quarter.

The FTSE-listed group, which makes sandwiches, sushi, quiches and other chilled foods, said it now expects FY26 Adjusted Operating Profit from continuing UK operations of between £234m and £242m — comfortably above current market consensus of £224m and implying 17-21% growth versus last year.

For the 13 weeks to 26 June, pro forma revenue rose 3.2% to £1.02bn, with manufactured volume growth of 0.7%, outpacing a declining wider grocery market. Growth was particularly strong in quiche, bread, sushi and chilled dips, aided by 375 new product launches including World Cup-themed ranges and summer novelties.

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CEO Dalton Philips said the enlarged Greencore, following its acquisition of Bakkavor, had “never been stronger,” with integration on track and a fast start on synergy delivery. The group still expects to bank c.£15m of cost synergies this year, working towards an £80m annual target.

Cashflow turned positive in the quarter, reversing part of the first-half working capital outflow, and management reiterated confidence in reaching a neutral net working capital position by year-end.

Greencore added that Q4 has started strongly, with the first cross-selling win — a new desserts contract — due to launch in August. The group also continues to explore a sale of its US business, held as a discontinued operation.

Investors welcomed the upgrade as evidence the Bakkavor integration is delivering ahead of schedule.