Irish convenience food company Greencore Group has issued its trading update for the third quarter (Q3) of its financial year.

The trading update, which comprises the 13 weeks ending on June 26, says the business delivered a strong operational and financial performance in Q3, with volume growth ahead of the market and excellent underlying profit momentum.

As a result, Greencore, which is a major supplier to the UK convenience food market, is upgrading the full-year 2026 (FY26) adjusted operating profit guidance.

Adjusted operating profit for the year for continuing operations is expected to be above current market expectations, in the range of £234 million to £242 million.

This is a 6% increase over the current market consensus forecast of £224 million.

The majority of the upgrade is driven by the underlying trading performance of the enlarged business, following the acquisition of UK convenience food company Bakkavor.

Greencore reported a revenue in Q3 of £1.024 billion, reflecting a 3.2% increase on Q3 of FY25.

Volume and mix contributed 2.3% to this revenue growth, reflecting an acceleration in volume growth versus the first half of FY26.

Price and inflation recovery contributed 0.9%, which reflected continued labour inflation, but was offset by dairy deflation and a decline in protein inflation.

Manufactured volume growth accelerated to 0.7%, ahead of the wider grocery market.

The broader portfolio of the enlarged business supported this, with 'legacy' Greencore growing 0.3% and 'legacy' Bakkavor 1.0%, the Irish business said.

Performance was particularly strong across quiche, bread, sushi and chilled dips during the period, the trading update notes.

According to Greencore, innovation remained an important contributor to growth, with 375 new products launched during the period.

The business said that focus during the quarter was on taking advantage of the consumer demand created by the recent World Cup.

Underlying profit momentum was ahead of expectations in both the legacy Greencore and Bakkavor businesses, driven by a combination of volume growth and continued margin improvement.

Greencore said the integration of Bakkavor is progressing well. The company has been acting as a combined business since April, and plans for the next stage of integration are being put into action.

Cashflow generation was reported as positive during Q3, and working capital outflow in H1 has "already started to reverse", with an expectation of a neutral working capital position by the end of FY26.

In terms of the outlook ahead, Q4 trading has started positively, with strong volume momentum continuing from the latter half of Q3.

Greencore said it is continuing to explore the potential sale of its US business, which has been treated as a discontinued operation and held for sale asset, although the business continues to trade positively and in line with expectations.

Commenting on the trading update, Greencore CEO Dalton Phillips said: "The Greencore team has delivered another strong performance in Q3, with volume growing ahead of the market and excellent underlying profit growth, even against a robust Q3 last year.

"We continue to deliver for our customers, supporting them through the busy summer period and helping them drive growth through product innovation," Phillips added.

"Greencore has never been stronger, and I’m really encouraged by what the enlarged business is starting to achieve. Customerswant to grow their business with us, our integration is fully on track, and we have made a fast start on synergy delivery," he said.