Greencore, the Dublin-based provider of convenience foods to the Irish and UK retail sector, has reported what it called "continued strong momentum" in the fourth quarter (Q4) of the financial year to September 27, 2024.

In a trading update for Q4 and full year 2024 (FY24), issued ahead of final financial results in December, the business said that its like-for-like (LFL) revenue for Q4 was up 3.7% year-on-year compared to Q4 of the 2023 year, while FY24 revenue is up 3.4%.

The group expects to report revenue of around £1.8 billion (€2.14 billion at the current exchange rate).

Greencore said that FY24 volume growth was "encouraging" despite some "seasonal factors" encountered, with almost all its categories seeing some volume growth.

The group is predicting that adjusted operating profit will be ahead of expectations, falling within a range of £95 million to £97 million (€113 million to €115.5 million).

"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," the business said.

The operating profit will be impacted by around £2.5 million (€3 million) in costs in the second half (H2) of FY24 that are going down as exceptional costs, relating to Greencore's "technology transformation programme".

Net debt (excluding lease liabilities) for FY24 will be around £148 million (€176 million), down from £154 million (€183 million) for FY23, while the ratio of net debt to EBITDA (earnings before interest, taxes, depreciation and amortisation) will be at the lower end of the target range of 1.0 to 1.5.

Following a commitment to return £50 million to shareholders in May 2024, the group extended its current share buyback programme by a further £10 million to an aggregate value of £40 million.

Greencore said the buyback is progressing well and it remains the intention of the board to declare a dividend for FY24 as part of this capital return programme.

Dalton Phillips, chief executive officer (CEO) of Greencore, said: "The Greencore team delivered an outstanding performance, with our FY24 results now expected to exceed current market expectations.

"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," Phillips added.