Greencore Group plc, the Dublin-headquartered convenience foods manufacturer, has today (Tuesday, October 10) reported a 13% increase in pro-forma full year revenue.
In a trading update update for the fourth quarter (Q4) and the full year ended September 29 2023, the company said that Q4 pro-forma revenue was 4% up year-on-year.
Pro-forma revenue at the group’s food to go division increased by 3% in Q4 and by 10% on an annual basis.
In the other convenience categories pro-forma revenues were up 6% in Q4 and by 22% on an annual basis.
Pro-forma revenue growth adjusts reported revenue to exclude the additional week of trading in the FY22 accounting period.
It also adjusts reported revenue in FY22 and FY23 to reflect Greencore’s disposal of Trilby Trading Limited at the end of September.
Greencore
Greencore, which operates 23 manufacturing units across 16 locations in the UK, anticipates that adjusted operating profit will be ahead of current market expectations in a range of approximately £74 million to £76 million.
The company is a leading manufacturer of food in the UK including sandwiches, chilled prepared meals, soups and sauces, salads, quiche and sushi.
Greencore’s net debt, excluding lease liabilities, is estimated to be approximately £155 million (FY22: £180 million) at year end.
This follows capital expenditure of £36 million and the completion of a further £10 million share buyback between May and August 2023.
In total, £35 million has been returned to shareholders to date since the group announced a recommencement of a value return to shareholders in May 2022.
It is intended that a further £15 million will be returned to shareholders through an additional share buyback programme starting today and running until no later than March 30, 2024.
Greencore said that this is part of the group’s wider commitment to return £50 million to shareholders by May 2024.
Dalton Philips, Greencore chief executive, said the company had delivered a strong second half performance in what was a difficult seasonal comparative period and against the backdrop of inflation and a challenging consumer environment.
“We continue to drive operational improvements across the business underpinned by our commitment to quality and customer service.
“While macro-economic uncertainty remains, we are pleased with the expected FY23 outcome and are committed to driving an improved financial performance in the period ahead,” he said.
Greencore will report its FY23 results for the year ending September 29, 2023 on November 28, 2023.
