Irish food group Greencore reported a “progressive” improvement in sales and profits year-on-year on volume growth and a rebound in inflation.
The convenience food maker’s revenue rose to £1.7 billion for the year. This represented an increase of £1.3 billion over the last year.
Greencore, where former DAA chief Dalton Philips took over as CEO last month, reported that revenue from its food-to-go business rose by a quarter during the year. Other convenience food categories saw sales increase 19 percent.
In the fourth quarter alone, revenue rose 25% due to the impact of the inflation recovery and new business in ready meals.
Greencore also reported an increase in sales at its Irish ingredients trading business and an “upward tens of percent increase in underlying prices”.
Adjusted operating profit is now expected to be at the lower end of their respective ranges of £72m to £77m. Greencore attributed this to absorbing the impact of the rail strikes and the unscheduled UK bank holiday in September.
Last year the company posted an adjusted operating profit of £39million during a “challenging” period.
The company has also completed a share buyback program launched in July.
Under the scheme, Greencore repurchased £10m of common stock.
Greencore said it sees no impact on consumer sentiment and demand at this time, but added that it will remain cautious on the impact of cost-of-living factors in the coming year.
In a trading update, the company said, “We remain focused on inflation recovery through all available mechanisms and are working with our customers and supply partners to mitigate the ongoing impact on consumer prices of persistently high inflation across the industry.”
Greencore, which is headquartered in Santry, supplies a range of chilled, frozen and ambient food to major UK food retailers. The company employs 13,000 people and has 16 manufacturing and sales sites in the UK.
https://www.independent.ie/business/irish/greencore-sees-revenues-and-profits-rise-as-consumer-demand-remains-strong-42056530.html Greencore sees sales and profits increase as consumer demand remains strong