Operating profit at Greencore rises after ‘robust’ demand for food-to-go categories

Convenience food maker Greencore has reported a jump in profits for the year ended September 30, helped by strong demand in its food-to-go division.

The Irish food group posted an adjusted operating profit of £72.2m (€83.6m). This was an increase of £33m (€38m) from the same period last year, when trading conditions normalized after periods of lockdown in 2021.

Group sales rose 31.3 per cent to £1.7bn (€1.97bn) in the year to 30 September, an increase reflecting ‘strong growth’ in food-to-go, other convenience Food categories and higher sales in the group’s Irish ingredient trading business are attributed.

Greencore said demand has been “resilient” throughout the year despite challenges including inflation and supply chain disruption. The food group said it recovered or mitigated all input costs, as well as other rates of inflation that hit a mid-teens rate for the period.

This was achieved through price increases, product and range innovations, and alternative sourcing.

Greencore, which former DAA boss Dalton Philips took over as CEO in September, said it will monitor the impact of higher prices on consumers in its biggest market, the UK.

In recent weeks, the group noted some “mix effect” between categories, adding that it is cautious about the potential impact of a recession and inflationary pressures on consumers, which have “not yet been fully absorbed”.

It added that it expects the coming period to be a “year of significant inflation” and will review customer contracts that are no longer “economic”.

“Greencore has made great strides in recovering from a very difficult period in which revenue, earnings, leverage and returns improved significantly in FY22,” said Mr. Philips.

“Our leading market positions, deep client relationships, well-invested facilities and intense focus on efficiency give us confidence as we continue to find our way through the challenges of the current macroeconomic climate.”

Greencore, which is headquartered in Santry, supplies a range of chilled, frozen and ambient food to major UK food retailers. The company employs 14,000 people and has 16 manufacturing and sales sites in the UK.

https://www.independent.ie/business/irish/operating-profit-jumps-at-greencore-following-resilient-demand-for-food-to-go-categories-42181244.html Operating profit at Greencore rises after ‘robust’ demand for food-to-go categories

Fry Electronics Team

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