Greencore has reported a 25% increase in pro-forma revenue in the fourth quarter of its financial year, citing both 'inflation recovery and new business wins'.
The group's food-to-go categories reported a 23% increase in revenue in the period, with other convenience food categories seeing a 29% gain.
The results are the group's first to be published under the tenure of new chief executive Dalton Philips, who joined the business in September.
In the fourth quarter, Greencore benefited from a 'combination of increased volumes, a low-teen percentage increase in underlying pricing, the onboarding of new business in ready meals and increased revenue in the group’s Irish ingredients trading business', it said.
For the full year to 30 September, Greencore saw group revenue rise by 29%, with food-to-go up 35% and other categories rising by 19%.
It described the full-year performance as 'satisfactory', citing further earnings progression and deleveraging across its business.
Adjusted operating profit has come in at the 'lower end' of its £72 million to £75 million forecast, however, due to rail strikes in the fourth quarter and an additional September bank holiday.
'For the full year, we have delivered good year on year volume growth while recovering significant levels of ongoing inflation and enhancing profit and cash conversion,' the group said.
'Persistently High Inflation'
Looking ahead, Greencore said that it is 'working with [its] customers and supply partners' to mitigate the impact of persistently high inflation on consumer prices. It said that it is currently making decisions on whether to bid for or renew contracts based on the economic landscape.
'We closely monitor the impact of the UK macroeconomic environment on consumer sentiment and demand in our categories,' it noted.
'We don’t currently see an impact, as consumer demand has held up well, however we remain watchful and cautious about the potential impact of cost-of-living factors through the year ahead.'
© 2022 European Supermarket Magazine – your source for the latest private-label news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.