Greencore upgrades FY26 profit outlook as Q4 trading outperforms market

(Sharecast News) - Convenience foods manufacturer Greencore lifted its profit guidance again on Tuesday after delivering a strong finish to the year, with fourthquarter trading showing volume growth ahead of the wider grocery market and continued momentum in margins and cash generation.

Greencore now expects FY26 adjusted operating profits of around £248m, ahead of current market expectations and above previously upgraded guidance. Q4 pro forma revenues rose 4.5% to £1.04bn, driven by solid volume growth and recovery of labour, packaging and rawmaterial inflation, while fullyear pro forma revenues increased 3.6% to £3.38bn.

Manufactured volumes grew 2.1% in Q4, outpacing grocery market growth of 0.5%, with chilled categories such as salads, dips, quiche and sandwiches performing strongly across both legacy Greencore and Bakkavor operations. FY26 manufactured volume rose 1.1%, again ahead of the market.

Greencore said underlying profit momentum was ahead of expectations, supported by margin improvement and ongoing costefficiency programmes, while it also noted that synergies from the Bakkavor acquisition continued to build, with early benefits from central reorganisation, procurement and distribution.

The FTSE 250-listed group also highlighted strong cash generation, expecting FY26 net debt of about £600m, equating to 1.8x net debt/adjusted EBITDA, moving towards its mediumterm target of 1-1.5x.

Greencore added that Q1 FY27 had started positively, with volume momentum carrying over from Q4, and noted further crossselling wins worth £30m of annualised revenue.

As of 1015 BST, Greencore shares were up 5.34% at 276.20p.

Reporting by Iain Gilbert at Sharecast.com

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