Greencore Group plc has seen a “strong improvement in trading and cashflow momentum”, the group claims in its latest quarterly statement.
This morning (Tuesday, July 27) the firm issued a trading update covering the 13 weeks from March 26, 2021 to June 25, 2021, as its third quarter (Q3).
Looking at performance, Greencore says that there was “strong revenue momentum in Q3 with group pro forma revenue 53.1% above prior year levels and only 2.8% below equivalent pre-Covid levels in Q3 2019”.
It is also claimed that there has been “progressive improvement in monthly trading with group pro forma revenue in June 1% above comparative pre-Covid-19 levels in financial year (FY) 2019”.
Pro forma revenue growth in food-to-go categories were 91.1% above prior year levels and 9.3% below the equivalent pre-COVID levels in Q3 19
In addition, the group said there was a “positive adjusted operating profit for the quarter, in line with management expectations”.
The group has reported “good progress” on its sustainability objectives, in particular the launch of fully recyclable sandwich skillet trials for customers in September 2021.
Turning to outlook, the group said that revenue momentum has remained encouraging in the first three trading weeks of July.
Notwithstanding the supply chain and labour challenges impacting the broader UK food industry at present, the group says it is “confident in its ability to deliver strong year-on-year profit and cashflow progression in the second half of the year”.
The group now expects to generate an FY21 adjusted operating profit outturn of between £36 (€42.13) million and £40 (€46.81) million, versus previous guidance of above FY20 levels of £32.5 (€38) million.
Given strong cashflow momentum, Net Debt (excluding lease liabilities) at the end of FY21 is anticipated to be below £240 (€281) million with Net Debt:EBITDA below 3x, as measured under financing agreements.
Greencore will report its FY21 results on November 30, 2021.