Greencore revenue rises despite challenging market conditions

Despite challenging market conditions, food producer Greencore Group saw revenue rise 4.4% to £331.9m in the three months to 26 December.

The group, which produces sandwiches for Marks & Spencer, Asda, Waitrose, Sainsbury’s and Tesco, said its convenience food division posted revenue of £320.4m, a 5.4% increase on a like-for-like basis.

Revenues in its ingredients and property division, which amounts to less than 5% of total group activity, fell by 16.8% to £11.5m on a constant currency basis.

“As expected, revenue was impacted by the reduction in the commodity price of edible oils,” the company said in a statement on Tuesday.

The group said the planned expansion to its Northampton facility had received the green light and it estimated the cost to be around £30m.

Across the Atlantic, where the company supplies the Starbucks and 7-Eleven chains, the firm saw revenues rise 19.5% thanks to the introduction of new products.

The group added it remained well placed with strong positions in growing product categories.

“Notwithstanding the challenges of the UK grocery retail market, the business has had a good start to the year with encouraging growth against a strong comparator period last year,” it said.

Greencore shares were 1.04% up to 291.10p at 15:52 on Tuesday.