Greencore Group Plc

FY25 revenue was just under GBP 2 billion, up 7.7% year on year. Adjusted operating profit was GBP 125.7 million, up 28.9%, and adjusted operating margin was 6.5%, up 110 basis points. Return on invested capital was 15%, up 350 basis points versus FY24. Free cash inflow was GBP 120.5 million, free cash conversion was 66.5%, and net debt to EBITDA closed at 0.4x. For FY26, management said trading has started well and expects another year of profitable growth and improved operating margin; it also guided to GBP 50 million of strategic investment, GBP 20 million to GBP 25 million of Making Business Easier spend, and about GBP 40 million of transaction costs tied to Bakkavor.

Dalton Philips framed FY25 as an exceptional year with progress across every financial medium-term target. He emphasized a “moat” built around innovation, technical quality, complexity management, infrastructure, and cost efficiency, and said the business is highly resilient and still has plenty more opportunity to pursue. He also sounded constructive on FY26, citing strong trading, structural tailwinds in convenience and premiumization, and confidence that the business can deliver another year of profitable growth.

Catherine Gubbins highlighted the main financial drivers behind the year: 7.7% revenue growth, GBP 125.7 million of adjusted operating profit, 6.5% margin, GBP 120.5 million of free cash inflow, and 0.4x leverage. She broke margin movement into 0.4 points from volume/mix, a 2.5-point inflation headwind, 1.7 points of pricing/recovery, 1.1 points from operational excellence, and 0.4 points from overhead savings; she also said inflation in FY25 was about 2% to 3%, and expects about 3% to 4% in FY26. On capital allocation, she said the board is recommending a 2.6p dividend, up 30%, but no further capital return is being proposed because of the Bakkavor transaction and the focus on deleveraging post-close.

Analysts pressed management on the consumer backdrop, inflation, retailer negotiations, spare capacity, margin upside, and the size/timing of Bakkavor-related costs. Management said consumer confidence remains weak, but Greencore is seeing strong volume trends and believes structural tailwinds and innovation support resilience; on inflation, management cited 2% to 3% in FY25 and 3% to 4% expected for FY26, with labor and protein among the key pressures. On margin, management said 7%+ remains the medium-term target but there are still many levers to pull, and on the deal it estimated about GBP 40 million of transaction costs in FY26 plus continued integration spend.