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Food & drink

Greencore leaps as first-half profits more than double

Shares in supermarket sandwich and ready meal supplier Greencore Group PLC (LSE:GNC) leapt over 18% after it more than doubled first-half profits.

Revenue came in at £866.1 million, down 6.4% after the company exited a number of low-margin contracts last year and the disposed of oil and fats arm Trilby.

Like-for-like revenue increased 4.1%, with a volume growth of 1.2%.

Operating profit jumped to £25.3 million from £11.8 million.

The FTSE 250-listed group said it is currently expecting full-year adjusted operating profit "in a range of £86-88 million", up 5% from previous guidance and ahead of current market expectations.

Greencore said its target is to return a £50 million to shareholders over next 12 months, starting with a share buyback of up to £30 million "and if the business continues to trade as expected the board intends to declare a dividend for the year to September 2024".

Analysts had been expecting operating profits nearer £20 million in the first half.

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