DAVY VIEW

Greencore delivered a solid Q3 trading performance, with volume/mix up 2.3% (H1-26: +0.8%), supported in part by a strong manufactured volume recovery of +1% in legacy Bakkavor (Q2-26: -1.3%). Q4 has started positively, with this volume momentum carrying over from the latter half of Q3. Synergy delivery made a ‘fast start’, with management now guiding to in-year cost synergies of c.£15m in FY26. Profit conversion also continued to track ahead, with management now anticipating FY26 adjusted operating profit of £234-242m, above current market expectations (c.6% midpoint beat). Overall, we believe today’s statement offers a reassuring response to many of the uncertainties raised at the interim results and, on first read, we anticipate upside to our forecasts.