Convenience foods giant Greencore has recorded revenue of £636.5 million in the third quarter of its financial year, which represents an increase of 76.6% on a reported basis, and of 11.8% on a pro forma basis.
For the first nine months of the financial year, ending 30 June 2017, the group has recorded revenue of £1,646.8 million, 56.6% ahead of the same period last year on a reported basis, and 8.8% pro forma.
UK & Ireland
The group's convenience food business in the UK and Ireland experienced a 20.9% increase to £370.6 million in the third quarter.
The company says that this growth was driven by the food to go business, which accounted for more than 60% of divisional revenue, and by positive underlying market growth.
At the end of June 2017, Greencore acquired a sandwich production facility in West Drayton, near Heathrow, which will enable the group to increase its food to go manufacturing capacity.
The group reported 'strong revenue growth' in its Irish ingredients business, but said that trading conditions were challenging in the ready meals, cakes and desserts businesses during the quarter.
Convenience Foods US
Greencore's US operation reported revenue growth of 393.3% to £265.9 million in the third quarter - an increase of 6.6% on a pro forma basis. The reported revenue growth primarily reflects the acquisition of Peacock Foods in December 2016.
Division growth was driven by the consumer packaged goods business, and the expansion of the Carol Stream, Illinois, facility to cater for a contract win in meal kits.
The group said that new commercial opportunities will help the US division to leverage its enlarged network footprint and widen capabilities in order to drive growth in the 2018 financial year.
Outlook
Greencore says that the fourth quarter of the year is 'the most seasonally important' period for both its UK and US operations. However, the group anticipates that its 2017 performance will remain in the range of current market expectations, as a result of challenging trading conditions.
The group says that this is a 'transformational period' for the company, and is confident that its current investments will enhance profit growth in the future.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.
