Greencore, the Dublin-headquartered convenience food maker, forecast profit for 2026 to be ahead of analyst expectations. It said its fourth-quarter revenues topped £1bn (€1.2bn).
The acquisition of former UK-market rival, Bakkavor, in January of this year for €1.4bn has helped drive the improved performance of the company in what CEO Dalton Philips described as a “monumental year”.
He said that the company’s focus for 2027 remains on “producing high-quality, innovative, fresh food, ensuring we deliver for our customers and progressing our ambitions for our larger business”.
The innovation in Greencore’s core consumer business is illustrated by the company’s launch of 167 new products in its fourth quarter.
Share performance
The immediate market reaction to the upgraded guidance has been positive. The company’s shares, listed on the London stock exchange, traded around 8% higher the day after the upgrade to guidance was announced.
Analysts covering the company are positive about the outlook. Goodbody said the trading update “provides further validation of the Bakkavor acquisition” and noted that the Greencore’s forecast guidance was “well above” the top of the previous earnings guidance range.
Davy said the update envisaged a “healthy upside to our forecasts” while RBC Capital Markets said it showed “a strong finish and a promising start”.
The comments are positive for the outlook for Greencore’s shares, which have had something of a bumpy ride this year as markets waited to see how the Bakkavor deal would play out.
In May, shares in the company dropped by almost 20% in a week as concerns were raised about the costs involved in the integration of the two businesses. While shares are well above the lows seen then, they have yet to top the high seen in January.
Greencore was established in 1991 following the privatisation of Irish Sugar. Since then, the company has increasingly focused on convenience foods and rose to become the largest sandwich manufacturer in the world.
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