UK convenience-food maker raises adjusted operating profit forecast to £234m-£242m on higher volumes and sales growth.
Greencore raised its annual adjusted operating profit forecast for continuing operations to a range of £234m to £242m, citing volume growth ahead of the wider grocery market. The update follows a 3.2% year-on-year rise in group revenue to £1.02bn in its fiscal third quarter, driven by a 4.7% increase in ‘food-for-now’ sales and a 1.8% rise in ‘food-for-later’ products.
Volume and mix contributed 2.3 percentage points of the quarterly growth, while price and inflation recovery added 0.9 points. The company’s nine-month revenue also climbed 3.2%, with underlying profit momentum exceeding expectations at its legacy and Bakkavor businesses.
Greencore shares surged 11.6% in morning trading to 247.6p, reaching a high of 250.8p after the announcement.