Greencore starts year in line as convenience food sees more growth
Convenience food manufacturer Greencore updated the market on its first quarter on Tuesday, reporting a 1.8% improvement in group revenue to £367.8m.
On a pro forma basis, adjusting for acquisitions and site exits, revenue increased by 0.7% in the quarter.
The FTSE 250 company said its food-to-go categories were ahead 4.5% in the 13 weeks ended 27 December at £240.9m, with pro forma revenue increasing by 0.5%, with the board saying that performance reflected the impact of the Freshtime acquisition which performed well during the quarter.
Its other convenience food categories were down 3% at £126.9m, but up 0.9% on a pro forma basis.
Greencore said the fall on a reported basis there reflected the exit from longer-life ready meals manufacturing at the Kiveton facility in the first half of 2019.
Looking ahead, Greencore said it had started the year in line with plan and continues to anticipate a year of profitable growth in the 2020 financial year.
Its board said a “strong” balance sheet and improved free cash flow conversion left it “well “placed to deliver on the medium term financial ambitions it outlined at its capital markets day in September.
The group would continue to consider further organic and inorganic investment in line with its capital allocation policy and strategic objectives, the directors added.
“We continue to make good strides in the diverse, attractive and growing UK food to go market,” said chief executive officer Patrick Coveney.
“Our strategy to drive growth, to deepen customer relevance and to pursue a distinctive and repeatable way of working is well embedded across the business.
“Following a steady start to 2020, we look forward to delivering a year of profitable growth.”
Greencore said it would report its 2020 interim results on 19 May.