Convenience food manufacturer, Greencore has said that it aims to grow revenue by between 3 and 5% in the medium-term.
The group’s leadership team outlined its “refined strategic direction” at a capital markets day in London today (Wednesday, February 5).
This includes a focus on product innovation, automation, operational and commercial excellence, and the company’s ongoing investment in infrastructure and process efficiency.
The Dublin-headquartered food business, which generated revenues of £1.8 billion in the 2024 financial year (FY24), has 16 manufacturing sites and 17 distribution centres in the UK, employing over 13,000 people.
In FY24, the company manufactured 748 million sandwiches and other food-to-go products, 125 million chilled ready meals, and 204 million bottles of cooking sauces, dips, and table sauces.
Targets
Greencore said that it is aiming to grow adjusted operating profit by at least 7% in the medium-term, along with a 15% return on invested capital.
It noted that there is an “opportunity to meaningfully expand and grow into new areas, including through mergers and acquisitions (M&A).”
Dalton Philips, chief executive of Greencore, said that that the plan will “build on the positive momentum from the past two years.
“As part of this plan, we are establishing a set of ambitious medium-term financial targets. We are confident in our ability to deliver these targets and believe this plan will benefit not just our shareholders but also our colleagues, customers, and other partners.
“Greencore is a great business with a strong foundation, lasting partnerships with customers, great food credentials, excellence programmes that are delivering, and outstanding people.
“There is a real opportunity to drive significant, incremental value in the coming years and we are looking forward to sharing our vision and ambition for the future,” he said.
Greencore
Last week, Greencore reported that its revenue increased by 7.5% to £474.3 million in a first quarter (Q1) trading update for the 13 weeks ended December 27, 2024.
The company said the result was driven by an increase in volumes and mix of 4%, and the positive impact of inflation recovery and price of 3.5%.
Reported revenue in food-to-go categories during the period increased 7.2% to £314.7 million, while overall sandwich volumes increased 2.5% year-on-year.
Sushi continued to show positive momentum with volume growth of 15.3% year-on-year, driven by the launch of a new range.
The group noted that it continues to face “an unprecedented labour cost challenge” from the National Living Wage and National Insurance increases set out in the UK Budget.
It said it is committed to offsetting this in full through manufacturing automation, operational excellence, labour planning, and technology investment, alongside inflation recovery measures.
Greencore said that current trading remains in line with its previous trading update, and the group continues to expect to deliver a 2025 performance in line with current market expectations.
The company is due to report its first half results for 2025 on May 27.