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On 5 February 2025, Greencore Group plc hosted a Capital Markets Day in London, where Chief Executive Dalton Philips and the leadership team outlined a refined strategic direction. The company also presented new medium-term financial targets, including >15% return on invested capital, 3-5% revenue growth, >7% adjusted operating profit, >55% cash conversion, and a 1-1.5x leverage target, and confirmed current trading is in line with its 30 January 2025 update.
| Date | 5 Feb 2025 |
| Time | 07:00:01 |
| Category | Miscellaneous |
| ID | 8763V |
5 February 2025
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Greencore Group plc ('Greencore' or the 'Group'), a leading manufacturer of convenience foods in the UK, is today hosting a Capital Markets Day in London for analysts and institutional investors.
At the event, our Chief Executive, Dalton Philips, together with other members of the Group's leadership team, will outline the refined strategic direction for the Group, presenting on product innovation, automation, operational and commercial excellence, and the ongoing investment in infrastructure and process efficiency.
We will also set out a summary of the updated Greencore investment proposition including the following highlights:
· Robust core business that provides a strong platform
o Growing convenience food market, with several tailwinds
o Leading positions in attractive categories
o Long-term strategic customer partnerships
o Outstanding innovation credentials
o Scale operations, with well invested sites
· Significant further upside in core business, through commercial and operational excellence programmes
· Strong balance sheet and cash generation
· Opportunity to meaningfully expand and grow into new areas, including through M&A
· Strong extended leadership team, with a track record of delivery
Greencore will outline new medium-term financial targets, detailing how they have been determined and how they will be delivered:
· >15% return on invested capital
· 3-5% revenue growth
· >7% adjusted operating profit
· >55% cash conversion
· 1-1.5x leverage target (pre-IFRS Net Debt to Adjusted EBITDA)
For those unable to attend the in-person event, the materials and a recording of the presentation will be available on Greencore's website at www.greencore.com/investor-relations.
Current trading remains in line with that disclosed in our 30 January 2025 trading update, and the Group continues to expect to deliver a FY25 performance in line with current market expectations[1]. The Group will not be providing any new information on current trading at today's event.
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"We are excited to unveil Greencore's refined strategic direction, which will build on the positive momentum from the past two years. This Capital Markets Day is the Group's first since 2019 and during the event, we will provide details of our plan to further strengthen our core business, outline how we intend to grow and expand, including the role of M&A, and detail our approach to capital allocation and delivering shareholder returns.
As part of this plan, we are establishing a set of ambitious medium-term financial targets. We are confident in our ability to deliver these targets and believe this plan will benefit not just our shareholders but also our colleagues, customers and other partners.
Greencore is a great business with a strong foundation, lasting partnerships with customers, great food credentials, excellence programmes that are delivering and outstanding people. There is a real opportunity to drive significant, incremental value in the coming years and we are looking forward to sharing our vision and ambition for the future."
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Dalton Philips |
Chief Executive Officer |
Tel: +353 (0) 1 605 1000 |
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Catherine Gubbins |
Chief Financial Officer |
Tel: +353 (0) 1 605 1000 |
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Colm Farrell |
Investor Relations Director |
Tel: +353 (0) 1 605 1000 |
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Jonathan Neilan |
FTI Consulting |
Tel: +353 (0) 86 231 4135 |
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Nick Hasell |
FTI Consulting |
Tel: +44 (0) 203 727 1340 |
Forward-looking statements
Certain statements made in this document are, or may be deemed to be, forward-looking. These represent expectations for the Group's business, and involve known and unknown risks and uncertainties, many of which are beyond the Group's control. The Group has based these forward-looking statements on current expectations and projections about future events based on information currently available to the Group. The forward-looking statements contained in this document include statements relating to the financial condition, results of operations, business, viability and future performance of the Group and certain of the Group's plans and objectives. These forward-looking statements include all statements that do not relate only to historical or current facts and may generally, but not always, be identified by the use of words such as 'will', 'aims', achieves', 'anticipates', 'continue', 'could', 'develop', 'should', 'expects', 'is expected to', 'may', maintain', 'grow', 'estimates', 'ensure', 'believes', 'intends', 'projects', 'sustain', 'targets', or the negative thereof, or similar future or conditional expressions, but their absence does not mean that a statement is not forward- looking.
By their nature, forward-looking statements are prospective and involve risk and uncertainty because they relate to events and depend on circumstances that may or may not occur in the future and reflect the Group's current expectations and assumptions as to such future events and circumstances that may not prove accurate. A number of material factors could cause actual results and developments to differ materially from those expressed or implied by forward-looking statements. There may be risks and uncertainties that the Group is unable to predict at this time or that the Group currently does not expect to have a material adverse effect on its business. You should not place undue reliance on any forward-looking statements. These forward-looking statements are made as of the date of this announcement. The Group expressly disclaims any obligation to publicly update or review these forward- looking statements, whether as a result of new information, future events or otherwise, other than as required by law.
We are a leading manufacturer of convenience food in the UK and our purpose is to make every day taste better. To help us achieve this we have a model called The Greencore Way, which is built on the differentiators of Lasting Partnerships, Great Food, Delivery Excellence, Sustainable Choices and People at the Core - The Greencore Way describes both who we are and how we will succeed.
We supply all of the major supermarkets in the UK. We also supply convenience and travel retail outlets, discounters, coffee shops, foodservice and other retailers. We have strong market positions in a range of categories including sandwiches, salads, sushi, chilled snacking, chilled ready meals, chilled soups and sauces, chilled quiche, ambient sauces, pickles and frozen Yorkshire Puddings.
In FY24 we manufactured 748m sandwiches and other food to go products, 125m chilled ready meals, and 204m bottles of cooking sauces, dips and table sauces. We carry out more than 10,500 direct to store deliveries each day. We have 16 world-class manufacturing sites and 17 distribution centres in the UK, with industry-leading technology and supply chain capabilities. We generated revenues of £1.8bn in FY24 and employ c.13,300 people. We are headquartered in Dublin, Ireland. For further information go to www.greencore.com or follow Greencore on social media.
1 Market expectations as complied by Greencore from available analyst estimates on 22 January 2025 (https://www.greencore.com/investor-relations/analyst-centre)