Greencore Sees 36% Surge in Annual Pre-Tax Profits

Greencore, the convenience food manufacturer, has reported a significant increase in pre-tax profits for the year ending September 27, despite a slight decline in revenue.

The Dublin-based, London-listed company saw its group profit before tax rise by 36% to £61.5 million, up from £45.2 million the previous year. However, revenue dropped by 5.6% to £1.807 billion, down from £1.913 billion, following the sale of its Trilby Trading business.

As the UK’s largest pre-packed sandwich maker, Greencore also experienced a more than 40% increase in basic earnings per share, which reached 10.1 pence, up from 7.2 pence.

The company announced that it would resume dividend payments and proposed a full-year dividend of two pence per share, to be paid in February.

While acknowledging the challenges posed by rising labour costs in the UK, particularly following changes in the national living wage and national insurance contributions expected in April 2025, Greencore expressed optimism about its performance. It estimates that the rise in national insurance charges will add £7.5 million to costs for fiscal year 2025.

To counterbalance these increased costs, Greencore plans to implement efficiency measures and inflation recovery strategies. As a result, it expects adjusted operating profit for fiscal year 2025 to fall within the higher end of market expectations.

Dalton Philips, CEO of Greencore, highlighted the company’s strong progress in achieving its financial goals and strategic priorities throughout fiscal year 2024, despite cost inflation and cautious consumer spending. He emphasized that Greencore remains focused on producing high-quality food, rebuilding profitability, and solidifying its position as the UK’s leading convenience food manufacturer.

Philips also noted the company’s strong financial discipline, which has led to a reduction in leverage to 1.0x. This has enabled Greencore to return £40 million to shareholders and initiate an additional £10 million share buyback program. Furthermore, it plans to continue investing in business growth, operational efficiency, and selective mergers and acquisitions.

In addition to the current share buyback, Greencore had previously committed to returning £50 million to shareholders in 2024, completing £40 million of that through buybacks by November.