Greencore Group PLC

Latest Results (07.03.2026):

Greencore Group PLC — Q4 2025 / full year (FY25, 52 weeks ended 26 September 2025): Greencore reported a strong FY25 trading performance with group revenue up 7.7% to £1,947.0m and materially higher profitability and cash generation. Adjusted operating profit rose 28.9% to £125.7m (margin +110bps to 6.5%), adjusted EBITDA was £181.2m and free cash flow improved to £120.5m, enabling net debt (ex‑leases) to fall to £70.1m. Management remains constructive on FY26 trading and is progressing the recommended Bakkavor acquisition, subject to regulatory approval.

Top-line and margins

Revenue: £1,947.0m, +7.7% year‑on‑year driven by new business wins (2.9%), volume/mix (2.8%) and pricing (2.0%). Adjusted operating margin improved to 6.5% (+110bps), moving closer to the >7% medium‑term target.

Profitability and EPS

Adjusted operating profit £125.7m (+28.9%); group operating profit £101.1m (+19.9%). Profit before tax £79.5m (+29.3%). Basic EPS 13.2p (+30.7%); adjusted EPS 18.6p (+46.5%).

Cash flow, leverage and balance sheet

Free cash flow £120.5m (conversion 66.5%), down Net Debt (ex‑leases) to £70.1m (Net Debt:EBITDA 0.4x). At year‑end cash and undrawn committed facilities totalled c.£341.1m; additional £825m facilities secured for the Bakkavor transaction.

Capital allocation and shareholder returns

Capital expenditure increased to £43.4m (strategic capex £13.8m). Proposed FY25 dividend 2.6p (+30%) and continued share buyback activity (net purchases in FY25 included £10.0m buyback), supporting progressive returns.

Operational performance

Manufactured volume growth 2.5% (underlying +1.1%), operational service level 99%, 534 new product launches, and productivity improvement of 4% (units per labour hour).

Exceptional items and costs

After‑tax exceptional charge £20.6m (pre‑tax £23.1m) comprising £12.0m transformation costs (Making Business Easier), £10.9m acquisition‑related costs and small pension restructure charges.

M&A update — Bakkavor

Recommended acquisition of Bakkavor progressed: shareholder approvals obtained; CMA Phase 1 largely clear except for own‑label chilled sauces. Greencore signed binding agreement to sell the Bristol chilled soups & sauces site as a remedy; completion still expected early 2026, subject to regulatory approvals.

Outlook and risks

Management reports positive start to FY26 while noting UK economic uncertainty and inflationary pressures (protein, labour). They expect to mitigate pressures via pricing, Operational Excellence and customer partnerships.

Pensions and other governance

Net pension deficit (pre‑tax) improved to c.£5.0m; UK scheme reached a fully funded triennial position so agreed £9.8m annual supplementary contributions will cease, reducing future cash outflows.