DAVY VIEW

In its first trading statement following the acquisition of Bakkavor, Greencore has delivered a solid update that provides confidence in the execution of its integration and synergy ambitions. Underlying trading at Greencore reflects healthy category momentum, with reported growth of 5.4% (Davy like-for-like (LFL) H1-26F: c.4%), while profit conversion has remained ‘robust’. The enlarged business (including Bakkavor) continues to trade in line with the Board's expectations and the group continues to expect to deliver ‘at least £80m’ in annual cost synergies. At first look, we envisage limited changes to our forecasts.