Greencore Group (LSE:GNC), the UK convenience foods manufacturer, has upgraded its guidance for full-year adjusted operating profit to a range of £234m to £242m, above current market expectations of £224m.
The update covers the 13 weeks to 26 June, the group's third quarter, during which pro forma revenue rose 3.2% against the same period last year. Volume and mix contributed 2.3 percentage points of that growth, an acceleration from the first half, while price and inflation recovery added 0.9 points, reflecting labour cost pressure offset by dairy deflation.
Manufactured volume growth accelerated to 0.7%, ahead of the wider grocery market's 0.4% decline, according to Circana data, with legacy Greencore up 0.3% and legacy Bakkavor up 1.0%.
"Greencore has never been stronger, and I'm really encouraged by what the enlarged business is starting to achieve," said chief executive Dalton Philips.
The group said cashflow generation turned positive in the quarter, with the first-half working capital outflow beginning to reverse, and it still expects a neutral net working capital position by the end of the financial year.
Synergy delivery from the Bakkavor acquisition is progressing, with duplicative central roles removed from April and procurement synergies now starting to flow; Greencore expects around £15m of in-year cost synergies in FY26, within a previously stated target of at least £80m annually.
The group continues to explore a sale of its US business, held as a discontinued operation, which it said is trading positively and in line with expectations.
Greencore's next update will be a Q4 and full-year trading statement on 8 October, ahead of full-year results on 1 December.
News Intelligence what this means for the company
Greencore raised full-year adjusted operating profit guidance to £234m–£242m, £10m–£18m above consensus, driven by Q3 volume growth of 2.3 percentage points (accelerating from H1) and early wins on Bakkavor synergies. The enlarged group's manufactured volumes grew 0.7% while the wider grocery market contracted 0.4%, and cashflow turned positive in the quarter after H1 outflows, signalling operational momentum post-acquisition.
The upgrade reflects both organic momentum—volume outpacing a declining market—and early delivery on the £80m+ Bakkavor synergy target (£15m expected in FY26). Working capital swung positive and leverage sits below board expectations at 2.3x, reducing near-term refinancing risk, though the US disposal process remains unresolved.
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