Greencore revenue rises but UK remains challenging

Convenience food manufacturer Greencore posted an 11.8% rise in group revenue in the 13 weeks to 30 June, with revenue year-to-date up 8.8%.

Third-quarter revenue came in at £635.5m, while revenue in the year to date was £1.6bn. The company attributed the increase to strong growth in the UK 'food to go' business and the US.

The UK & Ireland convenience foods business saw revenue growth of 15% on a pro-forma basis to £370.6m in the third quarter. Year to date, revenue was up 12.2% to £1.06bn, driven mostly by the 'food to go' segment, which accounted for more than 60% of divisional revenue in the quarter.

Meanwhile, the US convenience foods business saw third-quarter revenue growth of 6.6% to £265.9m, with year-to-date growth of 3.9% to £590.6m, mostly reflecting the acquisition of Peackock Foods at the end of last year.

"Q4 is the most seasonally important period for Greencore in both the UK and the US. This year, the step up in activity is expected to be even more significant given the integration of Peacock Foods, as well as the new business wins and associated project work in both the UK and the US.

"Notwithstanding the scale of this step up, and the fact that trading conditions remain challenging in certain parts of our UK portfolio, the group anticipates that the FY17 performance will be in the range of current market expectations."

At 0915 BST, the shares were up 1% to 235.91p.