Greencore Bounces Back, Boosted By Lockdown Easing And New Business Wins
Convenience foods producer Greencore has reported a pro forma revenue increase of 53.1% in the third quarter of its financial year, compared to the same period last year, as the business continues its recovery from a challenging coronavirus period.
In a trading update covering the three months to the end of June, the group said that 'strong execution on new business wins' and the extension of existing customer relationships helped supplement underlying revenue growth in the quarter, while the reopening of hospitality businesses has also given it positive momentum.
It now expects full-year adjusted operating profit to come in at between £36 million and £40 million, ahead of previous guidance of 'above FY20 levels of £32.5 million'.
“We are encouraged by the improvement in revenue, profitability and cash flow momentum in Q3 and the early weeks of Q4," commented Patrick Coveney, chief executive.
"Against the backdrop of the UK economy reopening fully, we are rebuilding our economic model effectively and sustainably with all stakeholders, supported by our long-standing customer relationships and further enhanced by the new business wins we have secured this year."
During the period, pro forma revenue growth in its food-to-go categories was up 91.1% on the previous year, and 3% lower than the same period in the third quarter of 2019.
It also reported 'positive' adjusted operating profit for the quarter, which it said was in line with management expectations. The performance is a step up from its first-half, in which the group saw a 19.0% decline in group revenue.
"We are also delighted to have made progress in creating a fully recyclable sandwich skillet, a key commitment of our sustainability strategy," said Coveney.
"We have a strong position in the dynamic UK convenience food market and are confident about our medium-term prospects.”
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