Greencore Group (GNC) H2 2025 earnings summary

Executive summary

• Achieved record profitability in FY2025, exceeding all medium-term financial targets, with ROIC reaching 15% and consistent delivery for customers supported by 2.5% volume growth.

• Strong performance driven by commercial and operational excellence, cost efficiency, and innovation.

• Positive momentum carried into FY2026, with a strong start to the new year and the transformational Bakkavor acquisition expected to close in early 2026.

Financial highlights

• Revenue grew 7.7% year-on-year to just under $2 billion (£1,947.0m), driven by new business wins, volume growth, and pricing.

• Adjusted operating profit rose 28.9% to GBP 125.7 million, with margin up 110 bps to 6.5%.

• Free cash inflow was GBP 120.5 million, with cash conversion at 66.5%.

• Net debt to EBITDA closed at 0.4x, reflecting strong deleveraging.

• Dividend per share increased 30% to GBP 0.026 (2.6p) recommended.

Outlook and guidance

• Trading has started well in FY2026, with expectations for another year of profitable growth.

• Operating margin expected to improve further in 2026, targeting 7% or above over the medium term.

• FY26 guidance includes capital expenditure of GBP 50 million, exceptional items of GBP 20–25 million, and adjusted effective tax rate of 23–25%.

• Inflation anticipated at 3–4% for FY2026, mainly from labor and protein costs, with ongoing cost initiatives to offset.

• Bakkavor acquisition expected to close in early 2026, with integration planning underway.