Slide 1: Results for the year ended 27 September 2024
RESULTS For the year ended 27 September 2024
Slide 2: Disclaimer ─ forward looking statements
Disclaimer ─ forward looking statements Certain statements made in this document are, or may be deemed to be, forward‐looking. These represent expectations for the Group’s business, and involve known and unknown risks and uncertainties, many of which are beyond the Group’s control. The Group has bas
Slide 3: Today's agenda
Today’s agenda 1. Introduction Dalton Philips, CEO 2. Financial Review Catherine Gubbins, CFO 3. Strategic & Operating Update Dalton Philips, CEO 4. Outlook Dalton Philips, CEO 5. Q&A Dalton Philips, CEO Catherine Gubbins, CFO 3
Slide 4: Introduction
INTRODUCTION Dalton Philips, CEO
Slide 5: Continued strong momentum
Continued strong momentum Delivering ahead of expectations in FY24, with strong momentum into FY25 and dividend reintroduction LFL Revenue Growth (+3.4%)(1) and LFL(2) growth in volume (+0.5%) – continuing to outperform the wider grocery market Delivery of Adjusted Operating Profit of £97.5m, a 28%
Slide 6: Financial Review
FINANCIAL REVIEW Catherine Gubbins, CFO
Slide 7: FY24 key financial metrics
FY24 key financial metrics(1) Adjusted Operating Profit Like for Like Revenue Growth £97.5m 3.4% +28% vs FY23 Revenue Growth (5.6%) Adjusted EPS Free Cash Flow 12.7p £70.1m +37% vs FY23 +23% vs FY23 ND:EBITDA(1) ROIC 1.0x 11.5% (0.2x) vs FY23 +260bps vs FY23 (1) The Group uses Alternative Performanc
Slide 8: Strengthened financial position
Strengthened financial position Continued LFL Revenue Growth and margin progression £m unless otherwise stated FY24 FY23 Variance Like for Like Revenue Revenue 1,807.1 1,913.7 (5.6%) Growth Pro Forma Revenue Growth (1.4%) +3.4% Adjusted Operating Profit 97.5 76.3 +27.8% Adjusted Operating Margin (%)
Slide 9: LFL revenue driven by volume and inflation recovery
LFL revenue driven by volume and inflation recovery Total Revenue (5.6%) Revenue vs FY23 (5.6%) • Disposal of Trilby Trading business accounts for a 4.2% reduction • Net business exits, including proactively LFL Revenue resigning several low margin contracts, led to Growth a 4.8% reduction in revenu
Slide 10: Positive margin and returns progression
Positive margin and returns progression Gross Margin % Adjusted Operating Profit £m Adjusted Operating Margin % ROIC % +310bps +35% +120bps +310bps FY22 to FY24 FY22 to FY24 FY22 to FY24 FY22 to FY24 97.5 11.5% 33.2% 5.4% 30.1% 29.7% 72.2 76.3 8.9% 4.2% 4.0% 8.4% FY22 FY23 FY24 FY22 FY23 FY24 FY22 F
Slide 11: Improving cash generation
Improving cash generation c.£10m DB pension Free cash flow Net Debt: EBITDA scheme reduction from conversion(1) +280bps (0.2x) September 2025 Free Cash Flow Conversion (LTM)1 £m unless otherwise stated FY24 FY23 Variance Opening Net Debt (excluding lease liabilities) 154.0 180.0 (26.0) 45.6% Adjuste
Slide 12: Shareholder value creation
Shareholder value creation Shareholder return commitment extended to £60m, including proposed FY24 dividend of 2.0p per share, first dividend in five years Organic Growth Inorganic Growth Return to Shareholders Investing in the business Support our growth agenda Reintroduction of dividend to support
Slide 13: CFO key priorities
CFO key priorities Cost Making Business Cash Capital Effectiveness Easier Generation Allocation Continued focus on tight Deliver progress on MBE Drive improved cash Deploy available cost control to ensure to support an enhanced generation to provide resources in the most the business is right growth
Slide 14: Strategic & Operating Update
STRATEGIC & OPERATING UPDATE Dalton Philips, CEO
Slide 15: Our FY24 scorecard
Our FY24 scorecard 1 2 3 Grow categories Drive growth Step-change ahead of through operational the market innovation performance 4 5 6 Mobilise our Build Explore technology traction in longer-term programme sustainability growth FY24 RESULTS | DECEMBER 2024 15
Slide 16: Three horizon framework for recovery and growth
Three horizon framework for recovery and growth 1 Stabilise 2 Rebuild 3 Grow Horizon 1 – FY23 Horizon 2 – FY24-26 Horizon 3 – FY24-28 Stabilising Rebuilding profitability Exploring growth the business and returns opportunities Momentum ahead Completed Mobilised in FY24 of plan FY24 RESULTS | DECEMBE
Slide 17: Continued outperformance against the market
Continued outperformance against the market Positive market indicators FY24 volume growth CPI Inflation Lowest level since April 2021 Mobility Sandwiches 83% of working population +170 bps attended workplace in the last vs. market1 week +0.5% Premium Greencore (LFL) Growth forecast in sandwiches & R
Slide 18: Driving improvement across our portfolio
Driving improvement across our portfolio ROIC improvement FY24 vs. FY23, bps Salads Sandwiches Ready Meals Ambient Other Sauce Categories1 +590 +380 +160 +90 +60 Counter- Significant New Renewed Improving seasonal business customer long-term performance optimisation win onboarded partnership through
Slide 19: Commercial Excellence
Commercial Excellence Securing our future Volume 10 long-term Driving growth renewals 4 1 above market supporting joint with current and value unlock with customers 350 bps new customers gross margin Cost improvement Price & Mix ‘Should cost’ 3 2 model offsetting inflation Delivering innovation alon
Slide 20: Operational Excellence
Operational Excellence Processes & Systems Manufacturing & Supply Chain Excellence 843 projects Removing inefficiencies delivering value to enable interventions 5 1 in FY24 99.2% Labour Optimisation 4 average 2 Automation service Building Rigorous cost focus levels capabilities to delivering product
Slide 21: People
People Enabling Systems Resourcing & Retention Standardised core HR Reduced voluntary processes with new 5 1 attrition and system absence rates 6% increase in Reward 4 2 Talent, Development & Inclusion Units per Labour Focused on Implemented new apprenticeships, Hour early careers and benefits polic
Slide 22: Technology & Infrastructure
Technology & Infrastructure Making Business Easier: Multi-year programme to drive simplicity and consistency of outcomes Implemented new HRIS system Efficiencies in payroll & recruitment Delivering progress Deployed new ERP in Atherstone site Consistency in IT estate in FY24 Improved real-time infor
Slide 23: Sustainability
Sustainability Food waste1 Developed multi-year roadmaps for ten focus areas -0.83 bps vs. FY23 Overdelivered FY24 target Automated energy and water metering and submetering Scope 1 & 2 carbon emissions2 Implemented product dashboard -5.4% vs. FY23 to monitor health data Further progress required Al
Slide 24: Horizon 3: Our approach to future growth
Horizon 3: Our approach to future growth 1 Stabilise 2 Rebuild 3 Grow Horizon 1 – FY23 Horizon 2 – FY24-26 Horizon 3 – FY24-28 • Horizon 3 building on a strong platform from Horizon 2 Strategic fit • Clear potential to use our capabilities and model to unlock value in new markets • Expansive, but di
Slide 25: What we will do in FY25
What we will do in FY25 Commercial Operations Enablers 1 Drive growth > market and innovation 4 Drive next phase of Operational Excellence 7 Standardise labour structures and reduce voluntary attrition Build capabilities in 2 revenue management 5 Reduce manual processes through 8 Realise value throu
Slide 26: Outlook
OUTLOOK Dalton Philips, CEO
Slide 27: Outlook
Outlook Continued delivery of ‘Horizon 2’ resulting in a faster 1 profit recovery through FY24 Continue to be encouraged by the accelerating progress made in commercial and operational excellence agendas, 2 with robust plans in place to continue to drive improvement in profitability and returns The
Slide 28: Q&A
Q&A
Slide 29: Appendix: Supplementary financial information
APPENDIX 1 Supplementary financial information
Slide 30: LFL Revenue Growth across both categories
LFL Revenue Growth across both categories FTG Categories (0.6%) LFL Revenue Food to Go categories Revenue change vs FY23 Growth 4.0% (0.6%) 2.2% 0.0% (4.6%) • Proactively resigning several low margin contracts 1,252.6 1.8% (net of new business wins) led to a 4.6% reduction 1,244.6 • Increase in LFL
Slide 31: FY24: other financial items
FY24: other financial items £m FY24 FY23 Highlights Net finance costs (22.8) (20.8) • Net finance costs increased in FY24 driven by higher cost of debt during the period Tax (before exceptional items) (16.0) (10.5) • The reported effective tax rate for the period ended 27th September 2024 was 25% (F
Slide 32: FY24 balance sheet highlights
FY24 balance sheet highlights £m unless stated FY24 FY23 Net Debt 193.0 199.0 Net Debt (excluding lease liabilities) 148.1 154.0 Net Debt: EBITDA (x)(1) 1.0 1.2 Pension deficit (net of deferred tax) 9.4 12.8 Average Invested Capital 660.3 678.1 ROIC (%) 11.5 8.9 (1) Net Debt: EBITDA (x) as measured
Slide 33: FY25 guidance
FY25 guidance £m FY25 FY24 Depreciation and Amortisation(1) c.£60m £56.2m Making Business Easier Exceptional Items c.£10m-£15m £4.0m Capital Expenditure c.£40m £32.4m Cash Interest(2) c.£21m £19.5m P&L Interest(2) c.£20m £20.5m Cash Tax c.£6m £5.4m Adjusted Effective Tax Rate 23.0%–24.5% 22% Pension
Slide 34: Definitions of APMs
Definitions of APMs The Group uses the following Alternative Performance Measures (‘APMs’) which are non-IFRS measures to monitor the performance of its operations and of the Group as a whole. Pro Forma Revenue Growth The Group uses Pro Forma Revenue Growth as a supplemental measure of its Adjusted
Slide 35: Definition of APMs continued
Definition of APMs continued… Capital Expenditure Net Debt and Net Debt Excluding Lease Liabilities The Group defines Maintenance Capital Expenditure as the expenditure required to Net Debt is used by the Group to measure overall cash generation of the Group and maintain/replace existing assets with
Slide 36: IR Contacts Calendar
IR CONTACTS CALENDAR Catherine Gubbins Q1 24 Trading Update 30 January 2025 Chief Financial Officer Capital Markets Day 05 February 2025 Half Year Period End 28 March 2025 Curtis Armstrong Director of FP&A and IR Half Year Results 27 May 2025 investor.relations@greencore.com 36
Slide 37: Appendix: Greencore at a glance
APPENDIX 2 Greencore at a glance
Slide 38: Greencore at a glance
£1.8 748million 125 1,600 10,500 42 million billion sandwiches million products direct to store chilled soups and annual turnover and other food deliveries each day sauces per year to go items chilled across 20 each year prepared categories Leading the meals per industry with year food safety 452 mi