Greencore reports growth in convenience foods, despite challenging grocery market

In its interim management statement for the 13 weeks prior to December 26, 2014, Greencore Group plc has announced good revenue growth in convenience foods.

The Group recorded revenue of £331.9m in the 13 weeks to 26 December 2014, an increase of 3.6% on the prior year on a reported basis and 4.4% on a like for like basis.

The Convenience Foods division recorded revenue of £320.4m, 4.9% higher than the prior year on a reported basis and up 5.4% on a like for like basis.

In the UK, like for like revenue was 3.6% higher than in the prior year, Greencore reports. The overall grocery market remained challenging in Q1 with negative same store volumes and price deflation. Against this backdrop, our key chilled markets performed well with continued good growth in the food to go market and a positive performance in the chilled ready meals market.

During the period, the extension to the existing Northampton sandwich facility was successfully commissioned with further product transfers due to take place by the end of January.

In the US, reported revenue was 34.1% higher than in the prior year and 19.5% higher on a like for like basis. This was driven principally by the continued rollout of new products with a key customer. The construction of the new facility in Rhode Island is nearing completion, with commissioning due to commence as planned in Q2.

Outlook

The Group says it remains 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 says.

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