Greencore lifts annual earnings and margins, maintains positive outlook for 2026

Investing.com -- Greencore reported full-year 2025 (FY25) results on Tuesday, with group revenue rising 7.7% to £1.95 billion.

Adjusted operating profit jumped 28.9% to £125.7 million and margins improved by 110 basis points to 6.5%.

The company highlighted positive contributions from new business wins, underlying volume growth and effective management of inflation and pricing.

EBITDA during the year jumped around 18% to £181.2 million, while profit before tax soared 29.3% to £79.5 million.

Free cash flow increased to £120.5 million, while net debt excluding leases fell sharply to £70.1 million, reducing leverage to 0.4x.

Food-to-go categories remained the core driver, generating £1.34 billion in revenue, supported by strong sandwich and sushi performance.

Other convenience categories also expanded, benefiting from the annualisation of a major ready-meals contract and broader inflation recovery.

The Group reported 2.5% manufactured volume growth, including 1.1% underlying volume gains, outpacing the wider grocery market.

Greencore said FY26 has started positively, despite an uncertain U.K. backdrop and ongoing inflation in labour and proteins.

The outlook points to “another year of profitable growth,” supported by operational momentum and ongoing investment.

The Group also noted progress on its recommended acquisition of Bakkavor, saying it has signed a binding agreement to sell its Bristol chilled soups and sauces site to Compleat Food Group (Holdings) Limited, a disposal that is subject to formal CMA approval and marks another step toward completing the deal in early 2026.

“We reported strong growth against all key financial measures and have met our medium-term ROIC target, established only nine months ago,” CEO Dalton Philips said in a statement.

He added that momentum has carried into the new financial year and described FY26—Greencore’s centenary—as a period in which the company will keep investing in its customer relationships and cost base.

Philips also said the Bakkavor deal “brings two great businesses together and creates real value.”