Greencore Group plc (LON:GNC), the leading manufacturer of fresh convenience foods in the UK, has announced its combined unaudited results for the half year ended 27 March 2026, following the acquisition of Bakkavor Group plc on 16 January 2026.
Dalton Philips, Chief Executive Officer, said1,2,3:
“We are proud to announce strong half year results for the new Greencore, having acquired Bakkavor in mid-January. The combined business is in a great place, and I remain incredibly excited for Greencore’s future.
The business continued to grow profitably during the half, with 15% pro forma adjusted operating profit growth and 3.2% pro forma revenue growth in the UK – during what was a busy period with the Bakkavor acquisition and integration. This performance is testament to the focus and dedication of every one of our 28,000 colleagues who create great food, day-in-day-out.
The integration of Bakkavor is progressing well and to plan – and we are focused on bringing our 4,000-plus product portfolio and enhanced capabilities to our customers. We are firmly on track to deliver our target of annual cost synergies of at least £80m within three years post-acquisition.
While we continue to monitor macro developments and inflationary impacts from the events in the Middle East, we remain confident in the short-term mitigations we have in place and the outlook for the business. We expect to deliver FY26 Adjusted Operating Profit in line with current market expectations.”
FINANCIAL PERFORMANCE1,3
Performance Summary | |||
| £M, unless otherwise stated | H1 26 | H1 25 | Change |
| Continuing operations (UK business only) | |||
| Pro Forma Revenue1 | 1,318.0 | 1,276.8 | +3.2% |
| Pro Forma Adjusted Operating Profit1 | 73.3 | 63.6 | +15.3% |
| Pro Forma Adjusted Operating Profit Margin1 | 5.6% | 5.0% | +60bps |
| Reported Revenue | 1,318.0 | 922.0 | +43.0% |
| Adjusted EBITDA | 111.2 | 73.1 | +52.1% |
| Adjusted Operating Profit | 73.3 | 45.2 | +62.2% |
| Operating (Loss)/Profit | (13.4) | 38.1 | (135.2%) |
| Adjusted Return on Invested Capital (“Adjusted ROIC”) % | 10.8% | 13.1% | (230bps) |
| Return on Invested Capital (“ROIC”) % | 8.1% | 13.1% | (500bps) |
| Free Cash Flow | (76.0) | 37.8 | (113.8) |
| Free Cash Flow Conversion %4 | 3.1% | 78.6% | |
| Total Group (UK and US) | |||
| Net Debt (excluding lease liabilities) | (817.6) | (136.2) | (681.4) |
| Leverage ratio5 | 2.3x | 0.8x | +1.5x |
| Adjusted EPS (pence) | 8.0 | 6.1 | +31.1% |
FINANCIAL HIGHLIGHTS
· Strong pro forma growth in the UK:
o Pro forma revenue1 growth of 3.2% to £1,318m, driven by a positive impact of volume and mix of 0.8% and inflation recovery and price of 2.4%.
o Pro forma adjusted operating profit1 growth of 15.3% to £73.3m, driven by good conversion, disciplined cost management and efficiency savings from our operational excellence programme – with margin increasing by 60bps.
· Adjusted ROIC of 10.8%, adjusted for the goodwill arising from the Bakkavor acquisition and reflecting the continued momentum in underlying profit.
· Negative Free Cash Flow driven by timing of working capital outflows and exceptional costs related to the acquisition and integration of Bakkavor.
· Leverage5 of 2.3x, below expected c.2.5x range following completion.
· US business classed as a ‘held for sale’ asset6. While the US business continues to perform strongly, we are exploring a potential sale of the business.
STRATEGIC & OPERATING HIGHLIGHTS
· Acquisition of Bakkavor completed on 16 January 2026, creating the UK’s leading manufacturer of fresh convenience foods, with enhanced capabilities for customers and a highly complementary product portfolio.
· Volumes have held up well in a subdued market; with legacy Greencore volume ahead of a flat wider grocery market7, whilst legacy Bakkavor UK volume declined, partially due to lapping of minor business exits from last year.
· New business won across several categories, including first wins as a combined business, which will be onboarded in Q3 and Q4 FY26.
· Continued emphasis on food innovation with 308 new products launched throughout the period.
· Excellent customer service levels of >99%8 throughout the period, including the peak Christmas season and integration period.
· Integration of Bakkavor fully underway and progressing to plan. People consultation process to reset structure now complete, with single functional organisational design having gone live in mid-April.
· Firmly on track to deliver at least £80m in annual cost synergies, in line with the previously stated timeframes9.
OUTLOOK
· Trading in Q3 has remained robust, as we lap a strong 2025 summer season.
· While the Group continues to monitor the events in the Middle East and potential inflationary impacts, we remain resilient and confident in the near-term mitigations we have in place10.
· With a strong competitive position and enduring customer relationships, the Group expects to deliver Adjusted Operating Profit in line with current market expectations2.
· The next update to the market will be a Q3 trading statement on 22 July 2026.
Presentation & Conference Call
A webcast and conference call for analysts and investors will take place at 8.30am on Wednesday 27 May 2026. Registration and dial in details are available at www.greencore.com/investor-relations/. The materials will be available following the presentation.
Basis of Preparation
Details of the basis of preparation of the financial information within this Interim Financial Report can be found in Note 1 to the attached financial information.
1. Pro Forma reflects new Greencore: Greencore 6 months, Bakkavor UK 10 weeks and Bristol up to date of disposal (both current and prior year). Pro Forma profit relates to Pro Forma Adjusted Operating Profit.
2. Prior to this release, market expectations for FY26 Adjusted Operating Profit was an average of £232m (range between £227m and £241m), inclusive of the US – with the US business contributing approximately £10m in FY26. This consensus was compiled by Greencore as of 22 May 2026, consisting of 9 analysts, with 3 analysts contributing to the US estimate.
3. The Group uses Alternative Performance Measures (‘APMs’) which are non-IFRS measures to monitor the performance of its operations and of the Group as a whole. These APMs along with their definitions are provided in the Appendix to the Interim Results Statement.
4. Free cash flow conversion over last twelve months.
5. Leverage ratio, per financing arrangements definition, being Adjusted Net Debt: Adjusted EBITDA – refer to capital management section of Note 22 in the 2025 Annual Report.
6. The results of the US business has been presented as a separate line on the income statement, please refer to Note 12 of the Interim Financial Report.
7. Compared to Kantar grocery market performance for the 24 weeks to 22 March 2026.
8. Measured as the number of on time and in full orders as a percentage of total orders.
9. Approximately 50% of the annual run-rate cost synergies realised by January 2027, 85% by January 2028 and 100% by January 2029.
10. The Group has c.75% of raw ingredient spend in joint models with customers and has fully hedged gas and electricity requirements for FY26 and majority for FY27.
11. Compared to Kantar grocery market performance for the 12 weeks to 22 March 2026.
