Convenience foods giant Greencore Group has posted a 7.2% increase in pro-forma revenue in the first quarter of its financial year, recording sales of £640.5 million for the period.
The group said that its UK & Ireland Convenience Foods business was the main sales driver in the quarter, reporting pro forma net sales growth of 8.7%, with its Food To Go subdivision seeing 11.4% growth.
‘This reflects both positive growth in the underlying market as well as the incremental impact of the previously announced business wins with several of the Group's largest customers, the group said.
Reported revenue in the other arms of the group’s UK&I Convenience Foods business grew by 5.5%, it added.
Pro forma growth at the group’s US Convenience Foods operation was 5.1%, with the division reporting sales of £255.1 million.
In the US, the group said that it ‘has intensified its focus on enhancing network efficiencies given the shape of the current and emerging commercial pipeline, particularly within some parts of the Group’s original network where capacity utilisation remains low’.
Divestment
Today's announcement follows yesterday’s news that Greencore is to sell its Cakes and Desserts business, based in Hull, UK, to Bright Blue Foods Ltd.
Coupled with the closure of the desserts facility the group operates in Evercreech, this marks the exit of Greencore from the UK cakes and desserts segment.
The company has also lessened its investment activity, with Q1 seeing a cooling off in investments following ‘substantial spending’ over the past two years, however it added that restructuring of the UK business is ‘on track’.
Looking ahead, Greencore said that it ‘anticipates delivering a year of strong growth in FY18 and is well positioned to drive improved profitability, cash flow and returns over the medium term’.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
