30th Jan 2025 11:07
(Alliance News) - Greencore Group PLC on Thursday said it has made a positive start to the first quarter of its current financial year, as it sets out its forecast for annual profit growth.
The Dublin-based convenience food maker said revenue for the 13 weeks that ended December 27 increased 7.2% to GBP474.3 million from GBP441.3 million last year.
This was driven by a growth in volumes and mix, including benefits from net new business wins, and the positive impact of inflation recovery.
Greencore said total volumes for the first quarter were up 2.6%, compared to an overall market performance of 0.5%, as set out in the Kantar grocery market performance data for the 12-week period to December 28.
Greencore expects to deliver financial 2025 results in line with a company-compiled market consensus of between GBP1.86 billion and GBP1.89 billion in sales, a 4.3% on-year rise at best from GBP1.81 billion.
Adjusted operating profit is forecast between GBP102.6 million and GBP107.1 million, between 5.1% and 9.4% higher than GBP97.5 million the year before.
Greencore will release its interim results on May 27.
Chief Executive Officer Dalton Philips said: "We continue to make progress against each of our strategic objectives and are well positioned to continue this momentum through financial 2025. We continue to remain focused on making high quality food, enhancing our profitability, and strengthening our position as the UK's leading convenience foods manufacturer."
The group's growth also came in spite of an "unprecedented labour cost challenge", following the hikes in National Insurance and the National Living Wage set out in the UK Autumn budget. Greencore is "engaging in constructive dialogue" with its clients to mitigate these added costs for the years ahead.
Philips added: "We have delivered a strong first quarter and are confident that we will deliver a full year performance in line with current market expectations. We will share more detail on our medium-term growth strategy at our Capital Markets Event in February".
Shares in Greencore were up 2.4% at 187.60 pence each in London on Thursday morning.
By Emily Parsons, Alliance News reporter
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