Greencore hikes earnings amid takeover tussle for rival

New customer wins help maintain strong revenue growth

Chorleywood, Hertfordshire, England, UK - August 1st 2022: Greencore food to go delivery van
Chorleywood, Hertfordshire, England, UK - August 1st 2022: Greencore food to go delivery van

Dublin-headquartered Greencore said full-year earnings are set to be better than expected amid robust sales and efforts to keep costs under control.

The food-to-go specialist, which supplies all major UK supermarkets, said new customer wins helped maintain strong revenue growth in its second quarter to March 28th.

It has also boosted profits thanks to ongoing action to keep a tight rein on costs.

Greencore expects underlying operating profits of £112 million to £115 million for the year to September 26.

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The bullish update comes as the London-listed group is vying to take over rival fresh food supplier and fellow FTSE 250 firm Bakkavor.

It was recently reported that Greencore had made a higher third approach for Bakkavor after its £1.1 billion proposal was rejected early last month.

An initial approach was turned down by Bakkavor’s board on February 27th, with a second, revised offer rebuffed on March 10th, as it “significantly undervalued the company and its future prospects”.