Proactive Investors - Greencore Group PLC (LSE:LON:GNC) shares ran up over 9% on Tuesday after the UK and Ireland’s preeminent sandwich maker published its full-year results.
FTSE 250-listed Greencore, which supplies all major supermarkets from Asda to Waitrose with pre-made meals, said its results were stronger than expected despite posting a 5.6% year-on-year sales decline to £1.8 billion.
However, this came with a substantially better gross margin of 33.2% (compared to 29.7% in 2023), resulting in a 36% improvement in profit before tax to £61.5 million.
“Although it is early in the year and being mindful of the significant labour cost headwind announced in the UK Budget, the group is encouraged by the business's underlying momentum,” said management.
Greencore added Costa Coffee, the largest cafe operator in the UK, to its client portfolio in the period, “securing a long-term supply position in their critical food to go mission and increasing our presence in this important and growing channel”.
The group also announced a £10 million share buyback programme following completion of a £40 million programme this month.
Shares were swapping for 215.5p with a £952 million market capitalisation at the time of writing.