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Greencore Sees Revenue Up In Q3 Despite Cost Inflation

By Robert McHugh
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Greencore Sees Revenue Up In Q3 Despite Cost Inflation

Greencore has reported that its revenue increased in the third quarter by 1.9% to £495.4 million (€573.39 million), despite a 'difficult consumer spending environment.'

The convenience food firm said revenue in food-to-go categories increased by 0.6% to £335.3 million (€389.4 million) with pro-forma revenue growth of 8.1%.

Greencore added that the increase was primarily due to inflation recovery, in addition to manufactured volumes in the food-to-go segment being 2.0% ahead of the third quarter of last year.

New Business Wins

Revenue from the distribution of third-party products was approximately 1% ahead of the prior year due to higher volumes. Reported revenue in other convenience categories amounted to £160.1 million (€185.9 million), registering a 4.7% increase year-on-year.

On a pro-forma basis this represented a 12.1% increase.

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Greencore said its performance was boosted by the on-boarding of new business wins in ready meals coupled with a strong performance across ambient sauces.

'Seasonally Important'

The company said cost inflation continues to be managed through ongoing recovery and other mitigating actions, although the rate of inflation in some areas is now beginning to slow.

The fourth quarter of this year represents a 'seasonally important' period for Greencore, the company noted and added that it anticipates delivering year-on-year profit and cashflow progression in the second half of the year.

"The food-to-go category remains hugely relevant to consumers as they contend with the cost-of living crisis, and it is particularly notable that 52% of supermarket sandwiches are now bought as part of a meal deal, up from 46% this time last year," said Dalton Philips, chief executive officer at Greencore.

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"We are delighted that our core category is playing such a key role in feeding the UK, and in a way that represents such good value."

"As we enter the fourth quarter, which is a seasonally important trading period for the business, we remain confident that the group will deliver a full year outturn in line with current market expectations."

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