Shares in Greencore climbed to an over four year high in London today after the company issued an upbeat annual profit outlook.
Greencore shares were up over 8% this evening after the convenience food manufacturer said it now anticipates that its full year adjusted operating profit will be ahead of current market expectations and in a range of £95m-£97m.
Greencore said this was as a result of continued strong focus on improving returns across its portfolio, other commercial initiatives and enhancing operational efficiency for key areas, such as labour and waste, across the company's network.
In a trading update for its fiscal fourth quarter and full year, Greencore said its fourth quarter like for like revenue growth was up 3.7% year on year, while its full year like for like revenue rose by 3.4%.
The Dublin headquartered company, which is the biggest pre-packed sandwich maker in the UK, said today it expects to report full year revenue of about £1.8 billion.
The company said that after its commitment to return £50m to shareholders in May 2024, it has extended its current share buyback programme by a further £10m to an aggregate value of up to £40m, as announced in August.
"The buyback is progressing well and it remains the intention of the board to declare a dividend for FY24 as part of this capital return programme," it added.
"The Greencore team delivered an outstanding performance with our FY24 results now expected to exceed current market expectations. Providing high-quality, fresh and healthy food to our customers every day is at the heart of what we do," Greencore's chief executive Dalton Phillips said.
"As we enter the new financial year, our focus remains on making really great food, rebuilding our profitability, and positioning Greencore to be the UK's leading convenience foods manufacturer," he added.
