Greencore Group raises profit guidance following strong quarterly performance

Greencore Group, the largest fresh convenience food manufacturer in the UK, has raised its full-year profit guidance for the second time. Following a strong fourth quarter, the company expects adjusted operating profit for its UK continuing operations to reach approximately £248 million for the year ending September 25. This figure exceeds the previous guidance of £234 million to £242 million and the market consensus of £238 million.

The company reported that fourth-quarter pro forma revenue rose 4.5% to £1.036 billion, contributing to a full-year pro forma revenue of £3.378 billion. Growth was driven by manufactured volumes, which grew 2.1% in the quarter, outperforming the wider grocery market. CEO Dalton Philips stated the business is in a strong position, noting momentum in cross-selling products like salads, ready meals, and breads.

In related financial news, Berenberg Bank raised its target price for Greencore Group from GBX 351 to GBX 384, maintaining a “buy” rating. The Royal Bank of Canada also upgraded the stock to an “outperform” rating, increasing its target price to GBX 345. The company is also seeing synergies from its acquisition of Bakkavor in areas such as procurement and distribution.