M&S and Waitrose meal deal maker Greencore rebuilds profits

Food manufacturer Greencore has experienced a “stronger than expected” year of trade as the meal deal producer rebuilds profitability ahead of 2025.

The Irish business, which supplies sandwiches and sushi to the likes of M&S and Waitrose, told markets this morning that like-for-like sales jumped from 29.7 per cent to 33.2 per cent in the year ending on 28 September, 2024.

Adjusted operating profit for the firm was up 27.8 per cent to £97.m, with a growing number of customer contract renewals to help build a “solid multi-year platform”.

Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) also increased by 15.7 per cent.

Greencore chief executive Dalton Philips said the positive momentum has emerged despite a period “defined by cost inflation and muted consumer confidence“.

Philips added: “Over the last 12 months we have remained focused on making high quality food, rebuilding our profitability, and positioning Greencore to be known as the UK’s leading convenience foods manufacturer.

“We continue to make progress against each of our strategic objectives and are well positioned to continue this momentum in FY25 and over the longer term.”

The group also returned a £40m to shareholders and announced an additional £10m share buyback.

It said its strong balance street will lead to an investment “in the growth and efficiency of our business and to pursue M&A opportunities on a selective basis, while also enabling us to deliver increasing returns to shareholders.”

Moving forward, Greencore anticipates its adjusted operating profit in the new year to land in the higher half of the market expectation range.