Convenience food manufacturer Greencore has today raised its annual profit expectations, driven by cost cuts and strong demand for its products during the summer, despite uncertainties in the broader macroeconomic environment.
The company, which sells soups, dips, salads, desserts and breads and which is the biggest pre-packed sandwich maker in the UK, forecast adjusted operating profit of £118-121m for the year ending September.
Greencore, which had agreed the takeover of fresh food provider Bakkavor Group in May, also said that it continues to expect to close the deal in early 2026.
Its shares jumped by 11% in London trade to reach their highest level since January 2020.
In a trading update today, Greencore said its revenues for the third quarter rose by 9.9% to £511.1m on the back of favourable summer weather and new business wins.
Revenues in its Food to Go categories increased by 9.2% to £360.7m while revenues in its Other convenience categories rose by 11.4% to £150.4m.
Greencore said it continued to invest in product innovation during the quarter and launched 168 new products in time for the peak summer season. These products included a Japanese-inspired strawberry and creme sandwich and a range of poke bowls.
Greencore has its headquarters in Dublin, with a UK head office in Worksop and 14 factories across the UK.
The group supplies nearly 750 million food-to-go items each year and employs about 13,300 staff.
Dalton Philips, Greencore's chief executive, said the company had another "outstanding" performance in the third quarter, with particularly strong volume momentum, aided by favourable summer weather and new business wins.
"As we enter our seasonally-important Q4, our focus remains on maintaining momentum in our business. While we are mindful of an uncertain economic backdrop and ongoing inflationary pressures, we now expect to deliver a full year adjusted operating profit of £118-121m, ahead of previous guidance," he said.
"We look forward to completing the value-creating acquisition of Bakkavor in early 2026, subject to regulatory approval, and will continue to update on progress in due course," he added.
The company counts Aldi, Marks & Spencer, Tesco, Waitrose and Sainsbury's among its customers.
Greencore's update contrasts that of baker Greggs, which earlier this month warned of a profit dip as unusually high temperatures in the UK discouraged customers from eating out.
Premier Foods also flagged the warmer weather was hitting demand for gravy, stock and soup.
"The business is continuing to deliver upgrades despite cost headwinds, and we are taking an increasingly favourable view of the Bakkavor combination," Jefferies analysts said in a note.
