Greencore lifts profit guidance, shares surge

(Sharecast News) - Shares in Greencore Group rallied on Tuesday, after the convenience food group boosted its full-year guidance on the back of a strong third quarter. The London-listed firm, which in May agreed to buy fresh foods specialist Bakkavor Group in a £1.2bn deal, saw revenues jump 10% in the 13 weeks to 27 June, £511.1m.

Greencore attributed the hot summer weather and new business wins for the strong performance. New product launches during the period included Marks & Spencer's popular strawberries and cream sandwich and a range of poke bowls.

Profit conversion was also ahead of management expectations, drive by strong volume momentum and cost control.

As a result, Greencore said that while it remained "cautious around the uncertain UK economic environment, alongside continued inflationary pressures - particularly in protein and labour - the group now anticipates 2025 full-year adjusted operating profits will be in the range of £118m to £121m".

Greencore had previously forecast adjusted operating profits of between £114m and £117m.

As at 1030 BST, shares in the FTSE 250 firm were trading 11% higher at 266.56p.

Dalton Philips, chief executive, said: "As we enter our seasonally-important fourth quarter, our focus remains on maintaining momentum in our business.

"We look forward to completely the value-creating acquisition of Bakkavor in early 2026, subject to regulatory approval."

Shareholders in both companies have backed the takeover.

Greencore, which is headquartered in Dublin, supplies all the UK major supermarkets, as well as coffee shops and other retailers, with fresh and ambient convenience foods, including sandwiches, salads, sushi, ready meals and snacks.

Bakkavor's retail consumers include Tesco, M&S and Waitrose.