Greencore Group PLC
LSE:GNC
Greencore Group PLC
Greencore Group PLC, a stalwart in the UK and Irish food manufacturing sector, was founded in 1991 from the privatization of Irish Sugar. Since its inception, it has transformed from a sugar company into one of the leading convenience food producers in the industry. Its primary operations involve crafting ready-to-eat and ready-to-cook meals, sandwiches, salads, and snacks, serving a myriad of retail and food service clients. The company’s headquarters in Dublin belie its extensive reach and deep integration into the fabric of the UK food retail landscape, with a keen focus on fresh, chilled products that cater to the modern consumer's demand for convenience without sacrificing quality.
What truly distinguishes Greencore in its business model is its focus on embedding within its customers' supply chains, enabling close collaborations that shepherd it from the production line directly to supermarket shelves. This integrated approach ensures that Greencore remains agile, responsive, and closely aligned with market needs. With key contracts supplying major grocery retailers and convenience chains, the company generates revenue through long-term agreements that promise stability. Additionally, their dedication to product innovation and commitment to sustainability bolsters their market reputation and solidifies customer loyalty, allowing Greencore to thrive in a competitive and fast-evolving sector.
Greencore Group PLC, a stalwart in the UK and Irish food manufacturing sector, was founded in 1991 from the privatization of Irish Sugar. Since its inception, it has transformed from a sugar company into one of the leading convenience food producers in the industry. Its primary operations involve crafting ready-to-eat and ready-to-cook meals, sandwiches, salads, and snacks, serving a myriad of retail and food service clients. The company’s headquarters in Dublin belie its extensive reach and deep integration into the fabric of the UK food retail landscape, with a keen focus on fresh, chilled products that cater to the modern consumer's demand for convenience without sacrificing quality.
What truly distinguishes Greencore in its business model is its focus on embedding within its customers' supply chains, enabling close collaborations that shepherd it from the production line directly to supermarket shelves. This integrated approach ensures that Greencore remains agile, responsive, and closely aligned with market needs. With key contracts supplying major grocery retailers and convenience chains, the company generates revenue through long-term agreements that promise stability. Additionally, their dedication to product innovation and commitment to sustainability bolsters their market reputation and solidifies customer loyalty, allowing Greencore to thrive in a competitive and fast-evolving sector.
Revenue Growth: Greencore reported Q1 revenue of GBP 389 million, up 24.4% versus last year and now above pre-COVID levels, driven by strong food to go growth and new business wins.
Food to Go Momentum: Food to go revenue rose 34.9% to GBP 254.3 million, running about 6% above 2019 pre-pandemic levels, with new business contributing strongly.
Inflation Recovery: Management is making good progress in passing through higher input costs and labor inflation, with confidence in full recovery during FY '22.
Labor & Supply Chain: Labor shortages and supply chain disruptions remain challenging, but are being managed locally and mitigated with automation and incentives.
Guidance Maintained: The company remains comfortable with market expectations for FY '22, assuming no major new COVID restrictions.
Strategic Initiatives: Strategic capex plans and efficiency programs are on track, and a new share ownership scheme has been rolled out to all employees.
Profitability Outlook: Profit weighting remains towards the second half; margin recovery to pre-COVID levels targeted over a multiyear period.
