How Does Greencore Company Work?

Greencore specializes in convenience foods such as sandwiches, salads, sushi, chilled ready meals, and chilled soups. They also produce ambient sauces and pickles, and frozen Yorkshire Puddings, catering to a wide consumer base.

The company supplies a broad spectrum of retail and foodservice channels across the UK and Ireland. This includes major supermarkets, convenience stores, travel retail outlets, coffee shops, and various foodservice providers.

In FY24, Greencore manufactured an impressive 748 million sandwiches and other food-to-go items. They also produced 125 million chilled ready meals and 204 million jars of sauces, dips, and table sauces, demonstrating significant production capacity.

Greencore operates 16 world-class manufacturing sites and 17 distribution centers in the UK. This extensive network supports over 10,500 direct-to-store deliveries daily, ensuring efficient product distribution.

In FY23, Greencore made a strategic decision to exit several low-margin contracts, a move that, while impacting revenue, significantly contributed to an accelerated profit recovery in FY24. The consolidation of its soups business into a single site also yielded efficiency gains. Furthermore, the company initiated a 'Making Business Easier' program to modernize its IT infrastructure and streamline processes.

Greencore's operational performance in FY24 was marked by service levels reaching 99.2%. The company also successfully onboarded a new substantial ready meals contract in late Q4 of FY24 at its Kiveton site. This focus on operational delivery is complemented by a strong emphasis on product innovation.

A core competitive advantage for Greencore is its extensive manufacturing and distribution network, facilitating over 10,500 direct-to-store deliveries daily. This infrastructure, coupled with advanced technology and supply chain capabilities, ensures high service levels and agility in meeting market demands. The company's commitment to innovation is evident in its product launches, with 270 new products introduced in H1 FY25 and 168 new products for the Q3 FY25 peak summer season.

Looking forward, Greencore's proposed acquisition of Bakkavor Group PLC, approved by shareholders in early July 2025 and slated for completion in early 2026 pending regulatory approval, is set to enhance its market standing. The company is also actively pursuing sustainability through its 'Better Future Plan,' addressing food waste, water usage, healthier product offerings, and reduced environmental impact packaging.

The company holds a leading position as a convenience food manufacturer in the UK, serving all major supermarkets and numerous other outlets. It is the largest sandwich producer and a significant manufacturer of ready meals in the UK market.

Risks include economic uncertainty, inflationary pressures on protein and labor, and evolving consumer preferences for healthier options. Adapting to regulatory changes and new competitors are also ongoing challenges.

The company is focused on developing its growth portfolio and leading the convenience food sector through customer relationship deepening and new business pursuits. Investments in IT infrastructure are also a priority for future growth.

Medium-term financial targets include over 15% return on invested capital and 3% to 5% revenue growth. For FY25, adjusted operating profit guidance was upgraded to £118-£121 million.