Convenience foods firm Greencore has reported a 24.4% increase in reported revenue in the first quarter of its financial year, citing 'strong growth' from its food-to-go business.
The group said that it experienced 'limited impact on demand' as a result of the Omicron variant during the period, in which the business reported revenue of £389 million (€466 million).
Its food-to-go arm reported revenue of £254.3 million (€304.6 million), a 34.9% increase, while other convenience food categories were up 8.5% to £134.7 million (€161.4 million).
Commenting on the performance of its food-to-go categories, Greencore said that its performance was augmented by new business wins, growth in its distribution arm, and emerging inflation.
'Encouraging Progress'
“I am encouraged by the progress that we have made during Q1, in what continued to be a challenging trading environment," commented Gary Kennedy, Greencore board chair.
"We remain focused on rebuilding our economic model effectively and sustainably with all stakeholders, thereby positioning the company for a strong future.”
The group said that it is 'on track' with its capital investment programme, investing around £30 million across three manufacturing sites to capitalise on recent business wins.
In addition, a return to pre-COVID volume levels has enabled it to restart its 'Excellence' cost efficiency programmes, which will seek to optimise capacity utilisation, increase automation, and reduce costs across the business.
Greencore chief executive Patrick Coveney is set to step down at the end of March. In November, Coveney said that the business had largely "weathered the storm" of the pandemic.
Full-Year Outlook
Looking ahead, Greencore said that it expects a full-year outturn 'in line with market expectations' – this is dependant, however, on no additional restrictions or lockdowns arising from COVID-19.
It added that it expects profitability to be 'heavily weighted' towards the second half of the year. Greencore will report its first-half results on 24 May.
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