Private label food manufacturer Greencore has reported a drop in its like-for-like third-quarter UK sales, due to the impact of the horsemeat scandal and the poor weather.
The group recorded revenue of £305.8 million the 13 weeks to 28 June 2013, a 2.6% increase on the same period in the previous year.
In an interim management statement, the company said that its UK sales fell by 1.3% during the 13 weeks to 28 June, excluding the impact of the sale of its Uniq chilled desserts and its acquisition of International Cuisine. The company's US results were stronger, with a 50% boost in revenue for the third quarter due to the acquisition of MarketFare Foods and Schau, along with a new supply contract with Starbucks.
According to a statement from Greencore, 'Market conditions in the UK remained tough during Q3 with continued poor weather affecting the business for much of the period.
'Whilst the overall chilled ready meals market is gradually recovering from the impact of the horsemeat scandal earlier in the year, Italian ready meals remained in year?on?year decline, affecting the Prepared Meals division'.
'The Group is strategically well positioned with a balanced customer portfolio and exposure to faster growing convenience categories. With the tight operating and financial controls we have in place, we remain confident in our ability to deliver growth in adjusted earnings per share for the financial year in line with expectations', the company said.
© 2013 - ESM: European Supermarket Magazine by Ellen Lunney
