Convenience foods firm Greencore has reported pro forma revenue growth of 25.8% year-on-year to £486.2 million (€575.9 million) in the third quarter of its financial year.
The company attributed its good performance to a combination of factors, including increased volumes, a low-teen percentage increase in underlying pricing, and increased revenue in its Irish ingredients trading business.
The company added that there was limited impact on demand to date amid inflationary challenges impacting the UK food industry.
Quarterly Highlights
The company's food-to-go segment saw revenue up by 31.2% on a pro forma basis, to £333.4 million (€394.9 million), while its other convenience food categories saw revenue growth of 15.5% year-on-year.
In the food-to-go category, growth was driven by continued recovery in underlying demand and boosted by onboarding of new business wins and increased pricing, the company added.
The group maintained operational service levels during the quarter and worked closely with its customers and supply partners to manage ongoing supply-side challenges.
It also worked closely with customers on product and range innovations to mitigate the impact of inflation at the consumer level.
Gary Kennedy, Greencore executive chair, said, “I am encouraged by the progress we have made during the third quarter against the backdrop of inflationary pressures for the industry.
"Revenue and profit conversion through the period has been encouraging and we are confident in our ability to continue to manage the various industry challenges and end the year strongly."
Outlook For Full Year
Greencore expects to generate adjusted operating profit in the range of £72 million (€85.3 million) and £77 million (€91.2 million) in full year 2022.
The company expects to deliver 'very strong' year-on-year profit and cashflow progression in the second half of the year, which it describes as its 'peak seasonal trading period'.
The group added that it would continue to monitor the impact of increased prices at a consumer level closely.
Kennedy added, "Our leading market positions, close customer relationships and intense focus on efficiencies mean that we look to the future with optimism, and we expect to deliver a strong year on year improvement in profitability, cash flow and returns for FY22."
Read More: Former Morrisons Boss Dalton Philips Named New Greencore CEO
© 2022 European Supermarket Magazine – your source for the latest private-label news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
