Greencore Sees Food-To-Go Revenue Drop By A Fifth Over Full Year
Convenience foods firm Greencore said that its food-to-go operations saw a 22% drop in revenue in full-year 2020, although the final quarter of the year showed some signs of improvement.
According to a trading update by the group, its food-to-go business was down 28% in the final quarter of the year, compared to a 53% drop in the third quarter.
The trading update was published following the completion of the group's financial year, on 25 September, and ahead of the publication of its full-year results on 24 November.
It expects to announce reported revenue of around £1.265 billion, with pro forma group revenue down 19% in the fourth quarter alone.
It also anticipates adjusted EBITDA of £85 million, following around £10 million worth of non-recurring COVID-19 related operating costs.
“The fourth quarter of our financial year has seen an ongoing improvement in demand for our products," commented Patrick Coveney, Greencore chief executive.
"I am hugely proud of the way that our people are supporting each other and our customers during this extraordinarily challenging period, and it is their hard work and dedication that is driving a resilient and improving trading performance."
The group said that its Northampton site, which was forced to temporarily cease production in August due to COVID-19, is now fully operational once again.
Coveney added that the group's "agile business model", along with its strong customer relationships and wide product range, "has enabled us to already capitalise on new business opportunities that will help underpin the build back in Group revenue.
"We are realistic but also confident in our plans for FY21, and remain excited by Greencore's longer term prospects.”
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine