Greencore Group (GNC) Trading Update summary

Trading performance and revenue

• Q4 like-for-like revenue grew 3.7% year-on-year, leading to FY24 LFL revenue growth of 3.4% and expected total revenue of approximately £1.8bn.

• Almost all categories saw LFL volume growth in Q4, despite seasonal factors.

Profitability and operational efficiency

• Adjusted operating profit for FY24 is anticipated to be ahead of market expectations, in the range of £95m–£97m.

• Profit conversion in Q4 exceeded expectations due to improved returns, commercial initiatives, and enhanced operational efficiency, particularly in labour and waste management.

• Technology transformation programme costs of about £2.5m in H2 FY24 will be treated as an exceptional item.

Cash flow, balance sheet, and capital returns

• Strong cash flows continue to strengthen the balance sheet, with net debt (excluding leases) expected at £148m, down from £154m in FY23.

• Net debt to EBITDA is projected at the lower end of the 1.0x–1.5x target range.

• Share buyback programme extended by £10m to a total of up to £40m, with plans to declare a dividend for FY24.