Convenience food group Greencore has reported a 7.5% increase in first-quarter revenue, to £474.3 million (€567.24 million), boosted by an increase in volumes and mix, and the positive impact of inflation recovery and pricing.
On a like-for-like basis, the company’s revenue grew by 4.9% during the quarter, while total volumes increased by 2.6%, compared to a year ago.
Profit conversion in the quarter – supported by the implementation of various operational and commercial initiatives – remained strong and aligned with the company’s expectations.
Dalton Philips, chief executive officer of Greencore, stated, “The group has made a positive start to FY25, and I am encouraged by the platform this provides us for the rest of the financial year.
“Our volume growth of 2.6% in the quarter again outperforms the market and is driven by both underlying volume growth and winning new business. This reflects a combination of the quality of our products, our commitment to innovation, and the strength of our relationships with our customers.”
Quarterly Highlights
Reported revenue in food-to-go categories increased by 7.2%, to £314.7 million (€376.4 million), driven by an increase of 2.8% in volumes and mix, among other factors.
Overall sandwich volumes increased by 2.5%, year on year, ahead of the market performance of 2.4%.
Sushi continued to show positive momentum, with volume growth of 15.3%, year on year, driven by the launch of a new range with one of its customers, Greencore added.
In the ‘other convenience’ categories, reported revenue amounted to £159.6 million (€190.9 million), registering an 8.1% increase, year on year.
Chilled ready-meal volumes increased by 23.5%, year on year, driven by a significant new chilled ready-meal contract.
Outlook
Greencore expressed concern over labour cost challenges from the National Living Wage and National Insurance increases set out in the UK Budget.
The company reiterated that it aims to offset these expenses in full by implementing various measures, including manufacturing automation, labour planning, and technology investments, among others.
‘The nature of our business is labour-intensive, and the group has been working hard to offset this cost, however, given the scale of the challenge, we are also engaging in constructive dialogue with our customers to help mitigate these costs,’ it noted.
“We have delivered a strong Q1 and are confident that we will deliver a full-year performance in line with current market expectations,” Philips added.
