Despite group revenue falling 5.6% to £1.8bn, Greencore reported an operating profit of £84.3m (27.7% rise).
The revenue decline was the result of a decrease in volume linked to the sale of Trilby Trading Limited on 29 September 2023 and the decision to resign a number of low margin contracts.
These decreases were offset by the impact of the recovery of inflation and pricing, as well as like-for-like volume growth underpinned by a “strong performance” in key categories.
The group also completed the consolidation of two soup manufacturing sites during the past year, as well as the sale of an investment property in Ireland for £700k.
Greencore returned £40m to shareholders via share buybacks during FY24 and has since announced an additional £10m share buyback scheme.
Driving efficiency
Reflecting on the year and looking ahead, the group said that it has developed a “leaner more agile and efficient operating platform” which is driving innovation throughout the business.
It also signalled at plans to combat rising labour costs driven by measures announced during the October Budget via the pursuit of “further efficiency initiatives”.
“The group delivered excellent progress against its key financial metrics and strategic priorities in FY24, underpinned by close customer engagement in a period that continued to be defined by cost inflation and muted consumer confidence,” commented Greencore CEO Dalton Philips.
After praising the dedication of the firm’s employees, Philips said that Greencore was continuing to make progress against its strategic objectives during FY25.
“Looking ahead, we expect adjusted operating profit for FY25 to be within the top half of the range of current market expectations and we’ll share more detail on our medium-term growth strategy at our Capital Markets Day in February,” he added.
Headquartered in Dublin, Greencore supplies all major supermarkets in the UK, as well as convenience and foodservice outlets, with products including sandwiches, salads, sushi, soups and sauces.
