Greencore Group Sees Profit Rise Amid Revenue Decline

In a recent report, Greencore Group plc revealed a significant increase in profit before tax for fiscal 2024, alongside a notable rise in earnings per share. However, the company also reported a decline in overall revenue, suggesting mixed performance that could influence stock prices.

Date: 03-12-2024

AI Rating: 6

Greencore Group plc's report highlights several key financial metrics that could impact stock prices. The company reported a profit before tax of 61.5 million pounds, an increase from 45.2 million pounds in the previous year, indicating a strong operational performance. This is further supported by the adjusted operating profit, which surged by 27.8% to reach 97.5 million pounds.

Furthermore, the earnings per share (EPS) showed a positive trajectory as well, rising to 9.9 pence from 7.2 pence. The adjusted basic earnings per share also improved, increasing to 12.7 pence from 9.3 pence. These gains reflect effective management and operational efficiencies, supporting a favorable view on profitability.

However, contrasting this positive performance, Greencore reported a decline in overall revenue, which fell by 5.6% year-over-year to 1.81 billion pounds. Adjusting for the disposal of Trilby Trading reveals a pro forma revenue decline of 1.4%. On a like-for-like (LFL) basis, revenue did increase by 3.4%, indicating some growth potential when accounting for business changes. This mixed performance in revenue may lead to concerns about sustainability in future growth, potentially affecting investor sentiment.

Moreover, the proposed dividend of 2.0 pence per share and the announcement of a 10 million pounds share buyback program could be seen as positive measures to enhance shareholder value and may drive interest in the stock, countering the effects of the revenue decline.

Stocks: GNC.L