Greencore revenue is growing as demand for take-out groceries increases

Irish food group Greencore reported sales rose in its fiscal third quarter as both food-to-go and other convenience categories performed strongly.

The convenience food maker’s revenue rose to £486.2million in the 14 weeks from March 25 to July 1. That meant year-over-year growth of 35%. Pro forma revenue was also up 22.3 percent over the same period in 2019.

Food to go sales rose 41 percent to £333.4 million, while other categories saw sales rise 23.5 percent to £152.9 million.

According to the company, earnings momentum improved in the third quarter, with Greencore confident of delivering strong growth in the second half of the year, the seasonal peak of trading.

It is expected to post an adjusted operating profit of between £72m and £77m for the year. Last year the company posted an adjusted operating profit of £39million during a “challenging” period.

While supply chain challenges and inflationary pressures remain, Greencore said it is working with partners to mitigate any potential impact on customers. The company expects inflation to continue into next year but said there was “limited impact on demand” at the moment.

“I am encouraged by the progress we made in the third quarter against the backdrop of inflationary pressures on the industry. Revenue and earnings conversion during the period was encouraging and we are confident in our continued strength in meeting the various challenges of the industry,” said CEO Gary Kennedy.

“Our leading market positions, deep customer relationships and intense focus on efficiency mean we are optimistic about the future and expect to deliver strong year-on-year improvements in profitability, cash flow and returns for fiscal 22.”

The company has also launched a share buyback program under which Greencore will repurchase common shares for a total of up to £10m.

Greencore, which has its headquarters in Santry, supplies major UK food retailers with a range of chilled, frozen and ambient food. The company employs 13,000 people and has 16 manufacturing and sales facilities in the UK.

https://www.independent.ie/business/irish/greencore-revenues-grow-as-demand-for-food-to-go-rises-41867340.html Greencore revenue is growing as demand for take-out groceries increases

Fry Electronics Team

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