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Investing.com -- Greencore Group plc has upgraded its full-year profit forecast after strong revenue and volume momentum continued into the second quarter, with profit conversion exceeding management’s expectations. Following the announcement, Greencore’s shares jumped over 3% on Tuesday.
The company reported strong revenue and volume growth in the second quarter of the company’s fiscal year 2025, driven by growth with customers and new business wins.
Profit conversion was ahead of management’s expectations, supported by ongoing excellence initiatives and a focus on cost control.
As a result, FY2025E adjusted EBIT is now expected to be in the range of £112-115 million.
This is an increase from the previous range of £102.6-£107 million and above the consensus average of £105 million and RBC Capital Markets’ estimate of £106.2 million.
According to RBC Capital Markets, this translates to adjusted EBIT margins of approximately 5.6% for both consensus and RBC.
RBC Capital Markets analysts said, "GNC’s efforts to streamline and optimize operations are clearly working well with the increased guidance for adj. EBIT today for F2025."
They also indicated that they "expect to see some estimate upgrades on the back of this updated information."
The Group plans to release its results for the half-year on May 27.