Leading UK sandwich-maker, Greencore, has announced an increase in its year-end profit forecast to between £36m (€42.1m) and £40m (€46.8m) compared with previous guidance of £32.5m (€38m).
This is based on what the company describes as strong revenue momentum in the third quarter of its financial year to 25 June, with a 53% increase on previous year levels and within 2.8% of the same period in 2019.
In the food-to-go category, income is up 91% on the same period in 2020, though 3% below the 2019 level.
The company acknowledges the supply chain and labour difficulties affecting the UK food industry. Despite this, Greencore is confident that it will deliver strong year-on-year profit and cashflow progression in the second half of 2021. As well as an increased profitability forecast for the year-end, Greencore also forecasts net debt to be below £240m (€281m) .
Markets reacted favourably to the update with Greencore shares at £129.27 (€152.10) on Wednesday compared with £119.00 (€139.83) a week ago.