Greencore reports revenue up 6.2% year-on-year

Greencore Group plc recorded revenue of £346.5m in the 13 weeks to June 26, 2015 an increase of 6.2% year-on-year.

The group recorded revenue of £986.3m in the 39 weeks to June 26, 4.2% ahead of the prior year on a reported basis and 4.7% ahead on a like-for-like basis.

Year-to-date revenue, it says, in the Convenience Foods division was £946.6m, 5.4% higher than the prior year on both a reported and a like for like basis.

There was an increase of 6.9% from the previous year on a reported basis and an increase of 6.3% on a like-for-like basis in the revenue of the Convenience Foods division, which recorded revenue of £331.9m, it says.

Looking to the UK, like-for-like revenue was up 4% than the previous year with the food to-go business experiencing good growth led principally by the addition of new product lines in the company’s Northampton facility, it says.

Revenue performance, Greencore says, was more subdued elsewhere in the UK.

In the US, like-for-like revenue was 22.1% higher than the previous year and this was driven principally by the roll out of new lines with our principal customers, it says.

The Ingredients and Property division, which now represents less than 5% of Greencore activity, recorded revenues of £14.6m in Q3, 4.4% higher on a constant currency basis and 8.2% lower in actual currency, it says.

Outlook

According to Greencore, the core UK grocery retail market remains challenging with high levels of change.

The combination of modest deflation in ingredients and packaging costs, together with price investment by grocery retailers, has resulted in value growth lagging behind volume in a number of our product markets, it says.

Greencore says it remains focused on delivering exceptional standards for its customers and on the execution of complex capacity increase projects in both the UK and US.

Trading information relates to the 13 weeks to 26 June 2015 (‘Quarter 3’ or ‘Q3’) and the 39 weeks to 26 June 2015.

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