Convenience foods giant Greencore has responded to the recent weakness seen in its share price, saying that the group is not aware of any developments that would change its performance outlook.
In July, the group reported revenue of £636.5 million in the third quarter of its financial year, which represents an increase of 76.6% on a reported basis, and of 11.8% on a pro forma basis. It anticipated that its 2017 performance would remain in the range of current market expectations, as a result of challenging trading conditions.
Now, Greencore notes that the integration of its US business is on track, and it is encouraged by the commercial opportunities being explored with new and existing customers.
The group adds that there has been some movement in its US operations, with changes at its production site in Jacksonville, Florida, but the board anticipates that the impact on profitability will be minimal.
Although Greencore remains positive about its performance, Clive Black, analyst at Shore Capital, said that such impromptu updates on poor share price performance are "rarely promising matters and read more defensive than not".
"As such, we continue to watch the sliding share price with interest and concern trying to work out what the market knows that we do not, noting as we do that the market is usually right," he added.
Greencore plans to issue its next trading update on the release of its full year results on 28 November.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.