Greencore Group plc (GNC.L), a manufacturer of convenience foods, on Thursday raised its fiscal 2025 outlook after reporting significantly higher profit in its first half.
Separately, the company announced that it has agreed the terms of a recommended acquisition of Bakkavor Group Plc (BAKK.L) at a base consideration, comprising 0.604 new Greencore shares and 85 pence in cash.
The offer values each Bakkavor share at 200 pence and Bakkavor's entire issued and to be issued share capital at approximately 1.2 billion pounds.
On the London Stock Exchange, Greencore shares were gaining around 5.4 percent to trade at 199.20 pence.
In the first half, Greencore's profit before taxation climbed 81.6 percent to 26.7 million pounds from last year's 14.7 million pounds.
Basic earnings per share grew 80 percent to 4.5 pence from 2.5 pence last year.
Adjusted profit before tax was 34.8 million pounds, compared to 16.9 million pounds a year ago. Adjusted earnings per share were 6.1 pence, up from 2.8 pence in the prior year.
Revenue for the period increased 6.5 percent to 922.0 million pounds from 866.1 million pounds in the last year, driven mainly by net new business wins impact of 2.9%. Pro forma revenue growth was 6.5%.
Overall volume growth was 2.5%, inclusive of net new business wins, and underlying volume growth was 0.5%, ahead of the wider grocery market.
Further, for fiscal 2025, the company now expects adjusted operating profit in a range of 114 million pounds to 117 million pounds, higher than previously expected range of 112 to 115 million pounds.
The revised outlook, with the seasonally stronger second half still ahead, brings the Group to above pre-pandemic levels of profitability.
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