Performance stabilised, business well positioned for the future
Greencore Group plc (‘Greencore’ or the ‘Group’), a leading manufacturer of convenience food in the UK, today issues its results for the 52 week period ended 29 September 2023.
SUMMARY FINANCIAL PERFORMANCE
| FY23 | FY22 | Change | |
| £m | £m | ||
| Group Revenue | 1,913.7 | 1,739.6 | +10.0% |
| Pro Forma Revenue Growth | +13.5% | ||
| Adjusted EBITDA | 132.8 | 126.9 | +4.6% |
| Group Operating Profit | 66.0 | 52.1 | +26.7% |
| Adjusted Operating Profit | 76.3 | 72.2 | +5.7% |
| Adjusted Operating Margin | 4.0% | 4.2% | -20 bps |
| Group Profit before taxation | 45.2 | 39.8 | +13.6% |
| Adjusted Profit Before Tax | 58.1 | 59.8 | -2.8% |
| Basic EPS (pence) | 7.2 | 6.2 | +16.1% |
| Adjusted EPS (pence) | 9.3 | 9.2 | +1.1% |
| Group Exceptional Items (after tax) | (5.5) | (13.5) | +59.3% |
| Free Cash Flow | 56.8 | 58.7 | -£1.9m |
| Net Debt (excluding lease liabilities) | 154.0 | 180.0 | |
| Net Debt: EBITDA as per financing agreements | 1.2x | 1.5x | |
| Return on Invested Capital (“ROIC”) | 8.9% | 8.4% | +50bps |
FINANCIAL HIGHLIGHTS1,2
- Volume growth ahead of the wider market3, despite exiting low margin business
- Strong second half, supporting delivery of Adjusted Operating Profit of £76.3m in FY23, up 5.7%
- Recovery of inflation, supported by cost reductions and other mitigations
- Net Debt (excluding leases) to Adjusted EBITDA reduced to 1.2x
- ROIC increased to 8.9%, up from 8.4% in FY22
- Continued share buyback programme will deliver on commitment of £50m value return
STRATEGIC & OPERATIONAL HIGHLIGHTS1
- Stabilisation of business completed through delivery of “Horizon 1” objectives, moving to “Horizon 2”, rebuilding profitability and returns
- Proactive management of contract profitability and manufacturing capacity utilisation
- Continued outstanding operational service levels of 98.5% achieved in FY23
- Refocused sustainability agenda
- Disposal of Trilby Trading Limited, increasing our focus on the convenience food market
- New five year £350m sustainability linked revolving credit facility providing significant financial flexibility for future growth
- Appointment of Catherine Gubbins as Chief Financial Officer and Executive Director
Commenting on the results, Dalton Philips, Chief Executive Officer, said
“In a challenging market environment, we have stabilised the business, and made good strategic progress. The Group delivered above-market volume growth3, despite exiting a number of low margin contracts. We also successfully mitigated and recovered the majority of our input cost inflation through effective operational and commercial initiatives. We are encouraged by our FY23 performance and the progress across the business. That performance is testament to the strength of our relationships with our customers and suppliers and, in particular, to the hard work and dedication of the entire Greencore team.
The Group continues to focus on improving profitability and is investing in a number of initiatives focused on both optimising our network and our IT infrastructure, to give us the platform for future growth. Our stronger balance sheet provides the financial flexibility to underpin this growth. We are pleased with the start to the year and although it’s early days, the Group remains confident in delivering FY24 within the range of current market expectations4.”
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Presentation details
Greencore Group plc will be announcing its FY23 results on the morning of Tuesday, 28 November 2023.
A presentation for analysts and institutional investors will take place on that day at 09.30am UK time at etc.venues Fenchurch Street, 8 Fenchurch Place, London, EC3M 4BP.
An audio webcast and conference call will also be available at 09.30am.
You can pre-register for the call and webcast at the link below. You will receive an email notification and calendar invitation with the phone number and a unique PIN to help speed up and ease access to the call*.
- Conference call: click here to pre-register
- Audio webcast: click here to pre-register
