Convenience food manufacturer Greencore said on Tuesday that it swung to an interim profit as revenues grew and announced the resumption of a £50m return to shareholders.
In the 26 weeks to 25 March, the company swung to a pre-tax profit of £1m from a loss of £1.8m in the same period a year earlier, with revenues up 33.6% to £770.8m, driven by strong growth in food to go and other convenience categories and new business wins.
Executive chair Gary Kennedy said: “We are very pleased to have delivered H1 revenues that are back above pre-Covid levels, which is a great achievement against a backdrop of mobility restrictions, supply challenges and emerging inflation.
“There has been encouraging momentum in revenue and profit conversion in the first seven weeks of H2, and we are confident in our ability to navigate our way through the current well-publicised macro challenges as we enter our peak seasonal trading period. Our strong market positions, close customer relationships and intense focus on efficiencies mean that we look to the future with optimism, and we expect to deliver a full year out-turn in line with market expectations.”
Greencore also said that it plans to restart a value return to shareholders of up to £50m over the next two years, initially in the form of a share buyback programme.
