GNC (LSE:GNC) reported robust first-half results for the six months ended 27 March 2026, marking the first reporting period to include the recently acquired Bakkavor UK business. Pro forma UK revenue increased 3.2% to £1.32bn, while pro forma adjusted operating profit climbed 15.3% to £73.3m. Operating margins improved to 5.6% as tighter cost management and operational efficiencies helped offset softer conditions in the grocery sector.
The enlarged business remains on course to generate at least £80m in annual cost synergies within three years. However, integration expenses, acquisition-related charges and working-capital outflows contributed to negative free cash flow during the period, pushing net debt higher to £817.6m, equivalent to 2.3 times EBITDA. Management pointed to resilient trading performance, strong customer service metrics and new contract wins, while also confirming that its US operations are now classified as held for sale. The move reinforces Greencore’s focus on the UK convenience food market and could signal further portfolio adjustments ahead.
Greencore’s outlook continues to be supported by strong earnings momentum and strategic growth initiatives. The group delivered stable revenue growth alongside improving profitability, while technical indicators suggest moderate bullish momentum in the shares. Valuation metrics imply the stock is trading at broadly fair levels, and the absence of major corporate disruptions adds to the company’s stable near-term outlook.
More about Greencore
Greencore Group is the UK’s largest producer of fresh convenience foods, supplying major supermarkets and foodservice operators with a range of more than 4,000 products. Following the acquisition of Bakkavor’s UK operations in January 2026, the company has materially expanded its scale, operational capabilities and category presence within chilled prepared foods.
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