Greencore Group (GNC) H1 2026 earnings summary

Executive summary

• Delivered strong H1 2026 results with 15.3% pro forma adjusted operating profit growth and 3.2% revenue growth, reflecting successful Bakkavor integration and new business wins.

• Integration program is progressing well, with synergy delivery on track and no disruption to core business; organizational redesign completed.

• The enlarged group operates 32 UK manufacturing sites and 21 distribution depots, managing over 5,000 SKUs and serving more than 70% of the UK population monthly.

• US business classified as held for sale; focus remains on UK integration and synergy delivery.

Financial highlights

• Pro forma revenue for H1 2026 was £1,318.0m, up 3.2% year-on-year; adjusted operating profit was £73.3m, up 15.3%, with margin up 60bps to 5.6%.

• Adjusted EPS increased 31.1% to 8.0p; free cash flow was negative at £76.0m, mainly due to working capital outflow and exceptional charges.

• Net debt (excluding leases) at £817.6m, leverage ratio at 2.3x, below post-acquisition guidance.

• Adjusted ROIC at 10.8% (down from 13.1% year-on-year) due to increased invested capital from the Bakkavor acquisition.

• Loss before tax of £30m and exceptional pre-tax charge of £75.3m, mainly from acquisition and integration costs.

Outlook and guidance

• FY26 adjusted operating profit expected in line with market consensus of £232m (range: £227m–£241m), including a £10m contribution from the US business.

• Confident in achieving at least £80m in annual cost synergies within three years post-acquisition and deleveraging to at or below 1.5x within two years.

• H2 momentum remains strong, with robust Q3 trading and new business wins expected to contribute circa 100bps of annualized revenue growth.

• Cautious on further inflationary pressures due to geopolitical events, but protections and hedges are in place for raw materials and energy.