Greencore hikes earnings amid takeover tussle for rival

Supermarket sandwich maker Greencore has said full-year earnings are set to be better than expected thanks to robust sales and efforts to keep costs under control.

The food-to-go specialist, which supplies all major UK supermarkets, said new customer wins helped maintain “strong” revenue growth in its second quarter to March 28.

It has also boosted profits thanks to ongoing action to keep a tight rein on costs.

Greencore expects underlying operating profits of £112 million to £115 million for the year to September 26.

The bullish update comes as London-listed group Greencore is vying to take over rival fresh food supplier and fellow FTSE 250 firm Bakkavor.

It was recently reported that Greencore had made a higher third approach for Bakkavor after its £1.1 billion proposal was rejected early last month.

An initial approach was turned down by Bakkavor’s board on February 27, with a second, revised offer rebuffed on March 10, as it “significantly undervalued the company and its future prospects”.

Greencore is headquartered in Dublin, with a UK head office in Worksop and 14 factories across the UK.

It supplies nearly 750 million food-to-go items each year and employs about 13,300 staff.