DAVY VIEW

Greencore’s interim results reflect a period inhibited by mobility restrictions, with like-for-like revenues in the key Food-to-Go (FtG) category down 26% (Q1 -22%, Q2 -30%). The unwind of restrictions since April has catalysed a strong rebound into the store perimeter, with FtG revenues down 11% versus pre-COVID levels. We anticipate a lag in operating margin as revenues rebuild and thus will hold our FY 2021 and FY 2022 adjusted operating profit forecasts (£38m and £75m respectively) while nudging up revenues to account for recent contract wins.