The group reported a 602% increase in group operating profit to £25.3m for the half year ended 29 March 2024, up from £3.6m in the same period last year. Adjusted operating profit more than doubled (+139.8%) to £28.3m, while adjusted profit before tax jumped 397.1% to £16.9m.
Profit gains for the manufacturer came despite a 6.4% decrease in revenue for the half year, down to £866.1m, due to a decision to exit a number of low margin contracts in the full-year 2023 and the Trilby Trading disposal.
However, on a like-for-like basis, revenue growth was 4.1% with a 1.2% increase from volume growth and mix impact.
Ahead of forecast
Based on these results, Greencore forecast that its full-year results would be ahead of market expectations – mean adjusted operating profit of £82.9m and mean sales of £1.8bn for 2024 – supported by a new large ready meals contract win to be onboarded at its Kiveton site late in the fourth quarter.
Commenting on the results, chief executive Dalton Philips said: “The Group’s accelerating financial performance is very encouraging as we focus on driving profitability and returns.
“We have exited low margin business and are undertaking a range of actions to increase the returns profile of each element of the portfolio. We have many opportunities to continue to grow our business profitability and have commenced investing in our IT infrastructure to create a solid platform for growth and enable further efficiency gains across the Group.
‘Stronger second half to come’
“Notwithstanding this additional investment, and while our seasonally stronger second half is still ahead of us, we now expect full-year 2024 adjusted operating profit in a range of £86-88m, ahead of current market expectations.”
Other strategic and operational highlights mentioned in the financial update included continued wok to enhance performance across Greencore’s manufacturing footprint, as well as plans to consolidate its soups business into a single site to provide efficiency gains.
Meanwhile, Premier Foods posted soaring profits in its financial results for the 52 weeks to 30 March 2024.
According to the figures, Premier Foods saw headline revenue rise by 15.1% year-on-year and brand revenue increase 13.5% after a strong Q4, while headline grocery revenue and sweet treats revenue rose by 16.7% and 10.6% respectively.
