Greencore Group
Website:
Greencore Group
Index:
FTSE 250
EPIC: GNC
Supersector:
Food, Beverage and Tobacco
Sector:
Food Producers
Subsector:
Food Products
Market Cap:
£2.29B
Payout Frequency: -
Greencore Group Dividend Analysis and Summary
Dividend declaration and timetable
- Declared: Final dividend of 2.6 pence per share for FY25 (vs FY24: 2.0p, +30%).
- Ex-dividend date: 08/01/2026 (derived from record date).
- Record date: 09/01/2026 (5:00pm).
- Payment date: 05/02/2026.
- Policy: Board reiterates intention to continue a progressive dividend, subject to AGM approval.
Coverage and cash impact
- Adjusted EPS: 18.6p; dividend cover c.7.2x.
- Free cash flow (FCF): £120.5m (FCF/share ˜ ~27.7p); FCF cover c.10–11x.
- Estimated cash cost of dividend: ~£11m (2.6p × ~435m shares; actual outturn may vary with share count at payment date).
- Balance sheet: Net debt (ex-leases) £70.1m; leverage 0.4x; liquidity headroom £341.1m.
- Pensions: UK scheme fully funded; annual contributions of £9.8m cease, FY26 contributions guided at c.£2m — supportive for future cash returns.
Sustainability and growth outlook
- Dividend sustainability looks strong: low payout ratio, robust FCF, improved margins (Adjusted Operating Margin 6.5%, +110bps) and ROIC 15.0%.
- FY25 cash discipline evident (FCF conversion 66.5%), and leverage well below the 1.0–1.5x medium-term target, leaving headroom.
- Near-term dividend growth likely to remain prudent given: ongoing transformation cash costs (multi-year, total estimated cash cost ~£80m) and impending Bakkavor acquisition. However, cessation of UK pension top-ups and improved profitability provide capacity to maintain a progressive trajectory.
Structural changes and implications
- Recommended acquisition of Bakkavor Group plc expected to complete in early 2026; funding secured via £825m facilities and a cash-and-share offer (each Bakkavor share to receive 0.604 Greencore shares plus 85p cash).
- Share issuance on completion will increase Greencore’s share count, raising the absolute cash cost of dividends unless offset by policy/payout adjustments; management still signals a progressive dividend.
- Disposal of Bristol soups & sauces site agreed as CMA remedy — facilitates deal completion, minor portfolio reshaping.
- RCF maturity extended to November 2030, supporting liquidity through integration.
Risks and flags to dividend stability
- M&A execution risk: integration of Bakkavor, potential synergy timing, and temporarily higher leverage post-deal could moderate dividend growth pace.
- Regulatory: CMA remedy in progress; any delay could affect deal timing and capital allocation.
- Macro and cost inflation (labour, protein) may pressure margins; company relies on price recovery and operational efficiency to offset.
- Transformation programme exceptional and cash costs (multi-year, ~£80m) could compete with cash returns if trading weakens.
- Customer concentration: five customers each >10% of revenue — any contract change could impact cash generation and dividend capacity.
Read more
Greencore Group Annual Dividend Yield - 2.01%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 10/01/2019 |
05/02/2019 |
Final |
3.37p |
GBX |
| 30/05/2019 |
03/07/2019 |
Interim |
2.45p |
GBX |
Total (Annual Dividends Per Share):
5.82p
Dividend Yield =
Annual Dividends Per Share (5.82p)
÷ Share Price (289.5p)
= 2.01%
Greencore Group Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 08/01/2026 |
05/02/2026 |
Final |
2.6000p |
GBX |
| 09/01/2025 |
06/02/2025 |
Final |
2.00p |
GBX |
| 02/01/2020 |
28/02/2020 |
Final |
3.75p |
GBX |
| 30/05/2019 |
03/07/2019 |
Interim |
2.45p |
GBX |
| 10/01/2019 |
05/02/2019 |
Final |
3.37p |
GBX |
| 30/08/2018 |
04/10/2018 |
Interim |
2.20p |
GBX |
| 07/12/2017 |
05/04/2018 |
Final |
3.37p |
GBX |
| 01/06/2017 |
03/10/2017 |
Interim |
2.10p |
GBX |
| 01/12/2016 |
04/04/2017 |
Final |
4.10p |
GBX |
| 02/06/2016 |
04/10/2016 |
Interim |
2.55p |
GBX |
| 03/12/2015 |
04/04/2016 |
Final |
3.75p |
GBX |
| 04/06/2015 |
02/10/2015 |
Interim |
2.40p |
GBX |
| 04/12/2014 |
02/04/2015 |
Final |
3.25p |
GBX |
| 04/06/2014 |
03/10/2014 |
Interim |
2.20p |
GBX |
| 04/12/2013 |
02/04/2014 |
Final |
2.90p |
GBX |
| 05/06/2013 |
03/10/2013 |
Interim |
1.90p |
GBX |
| Year |
Interim |
Final |
Currency |
Total |
Change |
| 2024 |
|
2.000 |
GBX |
2.000 |
-67.740 |
| 2019 |
2.450 |
3.750 |
GBX |
6.200 |
11.310 |
| 2018 |
2.200 |
3.370 |
GBX |
5.570 |
1.820 |
| 2017 |
2.100 |
3.370 |
GBX |
5.470 |
-17.740 |
| 2016 |
2.550 |
4.100 |
GBX |
6.650 |
8.130 |
| 2015 |
2.400 |
3.750 |
GBX |
6.150 |
12.840 |
| 2014 |
2.200 |
3.250 |
GBX |
5.450 |
13.540 |
| 2013 |
1.900 |
2.900 |
GBX |
4.800 |
|
Greencore Group Dividend Calculator
Greencore Group Dividend Growth
| Dividend Growth (1Y) |
30%
|
| Dividend CAGR (5Y) |
5.39%
|
| Years of Growth |
–
|
| Payout Ratio |
15.45%
|
| Buyback Yield |
3.1%
|
| Shareholder Yield |
4.02%
|
| P/E Ratio (TTM) | 22.62 |
|---|
| Forward P/E | 16.8 |
|---|
| P/FCF | 18.38 |
|---|
| Earnings Yield | 2.55% |
|---|
| FCF Yield | 5.44% |
|---|
| ROE | 12.23% |
|---|
| ROCE | 20.02% |
|---|
| Profit Margin | 2.96% |
|---|
| Operating Margin | 6.6% |
|---|
| Gross Margin | 32.49% |
|---|