- Revenue growth accelerates in Q3
- Another full-year upgrade
- CMA continues to probe Bakkavor merger
Convenience food maker Greencore’s (GNC) shares fattened up 10% to a five-year high of 265p after the FTSE 250-listed group upgraded full-year profit guidance off the back of a strong third-quarter performance.
Greencore, which supplies all the major supermarkets in the UK with everything from sandwiches and salads to frozen Yorkshire Puddings, remains cautious around the uncertain UK economic environment and faces continued cost headwinds.
Nevertheless, the group now sees full-year 2025 adjusted operating profit in the £118 million to £121 million range, ahead of previous guidance of £114 million to £117 million.
GROWTH ACCELERATES
The food-to-go manufacturer’s revenues grew 9.9% to £511.1 million in the quarter ended 27 June 2025, an acceleration from the 6.6% growth delivered in the first half driven by new business wins and favourable summer weather.
‘Volume growth was encouraging across most categories, particularly in sandwiches, sushi and ready meals,’ said Dublin-headquartered Greencore, which launched 168 new products in time for the peak summer season including a Japanese-inspired strawberry and creme sandwich and a range of poke bowls.
BAKK ON TRACK
In early July, Greencore received approval for its planned £1.2 billion takeover of private label pizza-to-hummus maker Bakkavor (BAKK) and continues to expect the merger to complete in early 2026, subject regulatory approval from the UK CMA (Competition & Markets Authority).
The watchdog will consider whether the merger would substantially reduce competition in the food-to-go, prepared food and ready meal markets in which these two major players operate.
‘As we enter our seasonally-important Q4, our focus remains on maintaining momentum in our business,’ said Greencore CEO Dalton Philips.
‘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.’
Greencore has identified scope for ‘substantial synergies’ resulting from a combination with Bakkavor, which would create a leading UK convenience food business with annual revenue of £4 billion and ‘strong commercial relationships and market-leading capabilities in attractive segments across the UK convenience food landscape’.
