Greencore Group

Margin of safety or safety of margin?

  • Sectors : Foods
  • Companies : Greencore Group

Ratings and price correct at time of issue.

  • Greencore Group

    Closing Price: 66.2p

  • RATING 13/03/18

  • PREVIOUS RATING 20/06/13



Our focus on Greencore has less pertained to top-line delivery, which has been robust post pandemic, but more to assessing sustainable margin. Our view remains that future growth is unlikely to accrue at historical economics, a function of margin dilutive volume infill, the upweighting of distribution activities, higher labour costs and inflation. Recent reference to “whether to renew contracts” may infer a stricter focus on returns or retailers beginning to flex their muscle. On our revised forecasts, the stock trades on just 4x EV/EBITDA, although forecasting error is high.

Download full report with analyst certification and important disclosures

Oct 13 2022, 06:45 IST/BST