Real wage increases and easing inflation have also helped improve volumes for its premium sandwiches aimed at high-street consumers, CEO Dalton Philips told Reuters.

Greencore, which supplies convenience foods to supermarkets including Asda, Tesco and Sainsbury, posted an annual adjusted operating profit of 76.3 million pounds ($96.4 million) on revenue of 1.91 billion pounds, beating analysts' average estimates.

"Premium sandwiches have increased by 34% in terms of volumes year-on-year, so I think people are back to the workplace.... and as people feel squeeze in household budget, I think a sandwich is a very affordable treat," Philips added.

The Dublin-headquartered company said that it expects cost pressures in fiscal 2024 to ease from 2023 levels.

Greencore, however, said it would pass on some of the costs to customers and raise prices for its food items. Analysts at brokerage Peel Hunt also flagged higher labour costs as a key challenge.

Shares of Greencore fell nearly 6% on Tuesday.

($1 = 0.7916 pounds)

(Reporting by Prerna Bedi in Bengaluru; Editing by Tasim Zahid)

By Prerna Bedi