**Summary of Greencore Group PLC FY25 Full Year Results Statement**
**Financial Performance Highlights**
**Revenue Growth** Greencore reported a 7.7% increase in revenue to £1,947.0 million, driven by new business wins (2.9%), underlying volume growth and mix (2.8%), and inflation/pricing impacts (2.0%).
**Adjusted Operating Profit** Increased by 28.9% to £125.7 million, with an adjusted operating margin of 6.5% (up 110 basis points).
**Profit Before Taxation** Rose by 29.3% to £79.5 million.
**Adjusted EPS** Grew by 46.5% to 18.6 pence.
**Dividend** Proposed dividend increased by 30.0% to 2.6 pence per share.
**Free Cash Flow** Improved significantly to £120.5 million, up £50.4 million from FY24, with a free cash flow conversion rate of 66.5%.
**Net Debt Reduction** Net debt (excluding lease liabilities) decreased by £78.0 million to £70.1 million, with a net debt-to-EBITDA ratio of 0.4x.
**ROIC** Return on Invested Capital increased by 350 basis points to 15.0%.
**Strategic and Operational Highlights**
**Volume Growth** Manufactured volume growth of 2.5%, with underlying volume growth of 1.1%, outpacing the grocery market growth of 0.7%.
**Innovation** Launched 534 new products in FY25, contributing to growth.
**Operational Excellence** Achieved a 4% improvement in productivity through operational excellence programs and invested £4 million in automation.
**Capital Investment** Increased capital expenditure by 34% to £43.4 million, focusing on core business and automation.
**Sustainability** Progressed the "Better Future Plan," achieving targets for Scope 1 and 2 carbon emissions and food waste reduction.
**Acquisition of Bakkavor Group plc**
Greencore announced the recommended acquisition of Bakkavor Group plc, expected to complete in early 2026, subject to regulatory approval.
The Competition and Markets Authority (CMA) identified no competition concerns in 99% of the combined groups revenues but raised concerns in the supply of own-label chilled sauces.
Greencore agreed to sell its Bristol chilled soups and sauces site to Compleat Food Group to address CMA concerns, pending formal approval.
**Outlook**
FY26 has started positively, with momentum expected to continue despite macroeconomic uncertainties and inflationary pressures.
The acquisition of Bakkavor is expected to strengthen customer partnerships, enhance innovation, and create value for stakeholders.
**CEO Commentary (Dalton Philips)**
Highlighted FY25 as an outstanding year, crediting the team and partnerships for strong financial and operational performance.
Expressed excitement for FY26, marking Greencores 100th anniversary, with continued focus on customer partnerships and cost management.
Emphasized the strategic value of the Bakkavor acquisition in creating a stronger, more resilient business.
**Financial Review**
Detailed breakdown of revenue growth across segments, with Food to Go categories contributing 69% of revenue.
Adjusted operating profit margin improved due to volume, pricing, and cost management.
Net debt reduction and improved cash flow reflect disciplined financial management.
**Strategic Developments**
Progressed the "Making Business Easier" transformation program, achieving quick wins and advancing multi-year initiatives.
Increased focus on automation and logistics optimization.
Enhanced employee value proposition, reducing attrition rates and strengthening health, safety, and inclusion initiatives.
**Appendix**
Detailed definitions and reconciliations of Alternative Performance Measures (APMs) used in the report.
Confirmation of the profit forecast for FY26 under Rule 28 of the UK Takeover Code, with assumptions outlined.
**Conclusion**
Greencore Group PLC delivered a strong FY25 performance with significant growth across key financial metrics, operational improvements, and strategic advancements. The company is well-positioned for FY26, with positive momentum and the transformative acquisition of Bakkavor Group plc expected to drive future growth and value creation.
