Greencore Group PLC (LSE:GNC) shares jumped 11% in early trading on Tuesday after the UK convenience food group reported a nearly strong rise in quarterly revenue and lifted its profit outlook.
Bakkavor Group PLC (LSE:BAKK) also gained 6%, with investors encouraged by the strong sector performance and progress on Greencore’s planned takeover of its business.
Greencore’s update showed third-quarter revenue up 9.9% to £511.1 million, buoyed by strong demand in sandwiches, sushi and ready meals, favourable summer weather and new product launches, including poke bowls and a Japanese-inspired strawberry and crème sandwich.
Volumes rose 3.6%, outpacing wider grocery market growth. Greencore continued to focus on operational efficiency, automation, and cost controls, helping profit conversion beat management expectations.
Looking ahead, Greencore raised its full-year profit guidance to between £118 and £121 million and said it expects to complete the Bakkavor acquisition in early 2026, pending regulatory approval, according to the company’s statement.
The shares were up 26p at 266.5p, while Bakkavor's rose 16p to 238p.