8th Oct 2024 09:28
(Alliance News) - Greencore Group PLC on Tuesday said full-year profit would be ahead of market expectations after broad-based growth.
The Dublin-based food processing firm said profit conversion in the fourth quarter ended September was ahead of expectations.
As a result, Greencore anticipates full-year adjusted operating profit to be "ahead of current market expectations," and in a range of GBP95 to GBP97 million. This was raised from GBP90.5 to GBP92.5 million, analysts at Shore Capital noted.
In response, shares in Greencore jumped 8.0% to 194.60 pence each in London on Tuesday morning.
Like-for-like revenue growth was up 3.7% in the fourth quarter year from a year prior driving full-year LFL growth, of 3.4%. Revenue for the financial year is forecast of around GBP1.8 billion.
Fourth quarter LFL volume performance was "encouraging" with almost all categories experiencing some LFL volume growth, the firm said.
Greencore said it would take a GBP2.5 million charge to adjusted operating profit in the second half relating to the group-wide technology transformation programme. This will be treated as an exceptional item rather than an operating expense, the firm said.
"As we enter the new financial year, our focus remains on making really great food, rebuilding our profitability, and positioning Greencore to be the UK's leading convenience foods manufacturer," said Chief Executive Dalton Phillips.
The group will hold a Capital Markets Day for analysts and institutional investors in London on February 5, 2025.
By Jeremy Cutler, Alliance News reporter
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