DAVY VIEW

Greencore’s equity raise helps to address near-term leverage concerns while providing operating flexibility to target new business opportunities. Under-utilisation across the food-to-go network necessitates volume infill, with revenue rebuild critical to operating leverage. Future growth will be less about the core and more about extending adjacencies and evolving channel, format and product innovation strategies. Revenue growth will remain a key arbiter of the equity, although the challenge for the group will be converting future growth at historical economics.