A strong performance in its US operations helped lift Greencore's sales by 4.4 per cent on a like-for-like basis in Q1 2015, according to accounts just filed by the convenience-foods giant.
Revenues for the period to 26 December stood at €445 million.
Greencore's US-based operation, which supplies major customers such as Starbucks and 7-Eleven, saw total revenues rise 34.1 per cent during the period, with like-for-like growth of 19.5 per cent.
A new facility in the state of Rhode Island, which will consolidate the group's activity in the north-eastern US, is scheduled to open in Q2, as planned.
Commenting on its performance, Darren Shirley at Shore Capital Stockbrokers said, "Greencore’s stock is trading on a September 2015F PER of 17.1x and an EV/EBITDA multiple of 12.3x, with a dividend yield of 2.1 per cent.
"We believe the EV/EBITDA rating looks demanding, though we also believe UK growth will continue to benefit from the strong growth in the food-to-go/convenience markets, with the US opportunity well underpinned by the strengthening relationship with key customers (Starbucks and 7-Eleven), investment in Rhode Island, and the initial foray to the West Coast in 2016."
Greencore did, however, describe its core UK market as 'challenging'.
© 2015 European Supermarket Magazine – your source for the latest retail news. Article written by Stephen Wynne-Jones.
