Greencore PLC: announces Full Year and Q4-2023 Trading Update

Dublin / IE. (gg) Greencore Group PLC, a leading manufacturer of convenience food in the UK, issues a trading update for the fourth quarter and full year ended 29 September 2023 – ahead of the publication of its full year results on 28 November 2023. Summary:

Revenue Growth (versus FY-2022)

Q4-2023 FY-2023
Reported Pro Forma Reported Pro Forma
Group 2% 4% 10% 13%
Food to go categories 3% 3% 8% 10%
Other convenience categories (1%) 6% 14% 22%

FY-2023 Overview

Group pro-forma revenue was 4 percent up year on year in Q4, with FY23 Group pro-forma revenue growth of 13 percent. For FY23 the Group anticipates Adjusted Operating profit will be ahead of current market expectations and in a range of approximately GBP 74m-GBP 76m. Net Debt (excluding lease liabilities) is estimated to be approximately GBP 155m (FY22: GBP 180m) at year end, after approximately GBP 36m capital expenditure and completion of a further share buyback. Net Debt:Ebitda, as measured under financing agreements, will be within the Group’s medium term target range of 1.0x – 1.5x. In total, GBP 35m has been returned to shareholders to date since the Group announced a recommencement of a value return to shareholders in May 2022. It is intended that a further GBP 15m will be returned to shareholders in due course in the form of an additional share buyback programme and as part of the wider commitment to return GBP 50m to shareholders by May 2024. Further to the announcement on 28 July 2023, the sale of Trilby Trading Limited was completed on 29 September 2023 post the approval of relevant anti-trust authorities and customary closing conditions.

Chief Executive Officer Dalton Philips: «The Greencore team has delivered a strong second half performance in what was a difficult seasonal comparative period and against the backdrop of inflation and a challenging consumer environment. We continue to drive operational improvements across the business underpinned by our commitment to quality and customer service. While macro-economic uncertainty remains, we are pleased with the expected FY23 outcome and are committed to driving an improved financial performance in the period ahead.»