Dublin-based convenience foods manufacturer Greencore has issues a trading update for the 13 weeks up to June 28, 2024.

This period constitutes the third quarter (Q3) of the fiscal year 2024 (FY24).

The latest update has seen Greencore increase its adjusted operating profit guidance for FY2024.

The business, which is a major supplier to Irish and UK-based supermarkets, reported a strong financial and operational performance for the period.

Like for like revenue (LFL) revenue increased by 1.4% year-on-year, while LFL manufactured volumes were "more subdued".

LFL volume was broadly flat in the sandwich category, versus an overall market decline of 1%. This was in addition to positive LFL volume performance across other key categories, including chilled ready meals, and cooking sauce.

The group saw revenue of £465.2 million (€533.03 million) in Q3, comprising food to go categories (£330.2 million/€392.54 million) and other convenience categories (£135 million/€160.49 million).

Greencore said it saw continued improvement in profit conversion year-on-year through ongoing commercial and operational actions.

The business also said it completed the "rationalisation" of soup sites, and continued to focus on operational initiatives aimed at deploying "best practice learnings" in the group.

According to Greencore, it generated strong underlying free cash in Q3 FY24. The previously announced £30 million (€35.66 million) share buyback is "ongoing and progressing well", the business said.

As part of a previously announced £50 million (€59.44 million) return to shareholders, the board of Greencore intends to declare a dividend for the year to September 2024.

As a result of this trading update, Greencore currently expects FY24 adjusted operating profit to be in the range of£88-90 million (€104.6-107 million at the current exchange rate), an increase on prior guidance.

Commenting on the Q3 trading update, Greencore CEO Dalton Phillips said: "Q3 represents another excellent performance by the business against a tough comparative period. Our continued progress has been delivered through ongoing impactful operational and commercial initiatives, which we are continuing to implement at pace.

"While Q4 remains a seasonally important trading period, our continued strong profit conversion performance means we now expect to deliver a full year adjusted operating profit of £88-90 million, ahead of previous guidance and market expectations," Phillips added.