Shares in convenience food producer Greencore rose over 5% in London today after it said it was off to a good start in the new fiscal year after its full-year profit rose on robust demand for its sandwiches, including the limited-edition strawberry and crème range.
Greencore today also announced a binding agreement to sell its Bristol site to Compleat, which paves the way for the company to complete its deal with Bakkavor early next year - in line with the expected transaction timeline. The deal was first announced in May.
The biggest pre-packed sandwich maker in the UK, Greencore said its annual revenues rose by 7.7% to £1.947 billion from £1.807 billion last year, while its group profit before tax jumped by 29.3% to £79.5m from £61.5m.
The higher profits were helped by robust demand for food-to-go products and effective cost management that helped offset inflationary pressures, the company said.
Its group operating profits were up 19.9% to £101.1m from £84.3m, the company added.
Greencore said that after the reintroduction of its dividend last year, the Board confirmed its intention to continue paying a progressive dividend, given the strong financial performance of the group. The proposed dividend for the year is 2.6 pence per share, the company added.
Dalton Philips, Greencore's chief executive, said the company delivered "an outstanding performance" in FY25.
"We reported strong growth against all key financial measures and have met our medium-term ROIC target, established only nine months ago," the CEO said.
"Momentum has continued into the new financial year and I'm excited for what's to come in FY26, a year that also marks Greencore's 100th year in business. As we celebrate that milestone, we will continue to invest into strengthening our customer partnerships and managing our cost base closely," Dalton Philips said.
He said the Bakkavor acquisition brings two great businesses together and creates real value - for customers, consumers and colleagues.
"We're already collaborating closely with the Bakkavor team on integration planning and we look forward to bringing the businesses together in early 2026," he added.
He also said that innovation remains a key volume driver for the company, with 20% more new products launched this year, including items such as the expanded sushi and poke bowl ranges and Japanese-inspired strawberry and crème sandwich sold at Marks & Spencer.
"We're seeing a change in consumption habits where traditional three meals a day is declining as people are snacking more often," Philips said, noting that it was particularly evident with Gen Z and was benefiting the company, which is focussed on sandwiches and food-to-go products.
Bakkavor deal
Greencore's Bristol site and its related business generated revenues of about £47m in the year ended September 2025, about 1% of the revenues of the combined group.
The deal with Bakkavor will create a leading UK convenience food business at a time when UK companies have become increasingly attractive targets for private equity and strategic buyers due to their relatively depressed valuations.
Greencore supplies convenience food to all major supermarkets in Britain and is the biggest pre-packed sandwich maker in the UK.
Bakkavor makes around 3,500 different freshly prepared food products, including meals, salads, desserts, dips, sauces, sandwiches and pizza and bread products.
It has been reshaping its businesses across the UK, China and the US to cope with steep costs, subdued consumer demand and reduced volumes.
Bakkavor's retail customers include Tesco, Marks & Spencer and Waitrose, while Greencore supplies all major UK supermarkets.
