Dublin / IE. (gg) Irish Greencore Group PLC, a leading manufacturer of convenience food in the UK, issues a trading update for the fourth quarter (Q4) and full year (FY-2024) ended 27 September 2024, ahead of publication of full year results on 03 December 2024.
- Like for Like (LFL) revenue growth for Q4 was up 3.7 percent year on year driving FY-2024 LFL revenue growth, also up 3.4 percent. The Group expects to report FY-2024 revenue of circa GBP 1.8 billion. Q4 LFL volume performance was encouraging given some of the seasonal factors encountered, with almost all categories experiencing some LFL volume growth.
- Profit conversion during Q4 was ahead of our expectation and the Group now anticipates FY-2024 Adjusted Operating Profit will be ahead of current market expectations] and in a range of GBP 95m-GBP 97m. This was as a result of continued strong focus on improving returns across our portfolio, other commercial initiatives and enhancing operational efficiency for key areas, such as labour and waste, across our network.
- Our critical Group-wide technology transformation programme is now well established, and our Adjusted Operating Profit range is impacted by c.GBP 2.5m of costs in H2 FY-2024 related to that project that will be treated as an exceptional item rather than an operating expense.
- The Group continues to drive strong cashflows and strengthen its balance sheet. Net Debt (excluding lease liabilities) will be approximately GBP 148m (FY-2023: GBP 154m) and Net Debt to Ebitda (as measured under financing agreements) is expected to be at the lower end of the Group’s medium term target range of 1.0x to 1.5x.
- Following the commitment to return GBP 50m to shareholders in May 2024, the Group extended its current share buyback programme by a further GBP 10m to an aggregate value of up to GBP 40m, as announced on 29 August 2024. The buyback is progressing well and it remains the intention of the Board to declare a dividend for FY-2024 as part of this capital return programme.
- The Group will hold a Capital Markets Day for analysts and institutional investors in London on 5 February 2025. More information on this event will be provided in due course.
Chief Executive Officer Dalton Philips: «The Greencore team delivered an outstanding performance with our FY-2024 results now expected to exceed current market expectations. Providing high-quality, fresh and healthy food to our customers every day is at the heart of what we do. To all our colleagues who work tirelessly to make this happen I would like to say a huge thank you. As we enter the new financial year, our focus remains on making really great food, rebuilding our profitability, and positioning Greencore to be the UK’s leading convenience foods manufacturer. We’ll share more detail at our FY-2024 results in early December, and will use our Capital Markets Day in early 2025 to outline our medium-term growth strategy.»
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