Convenience food maker Greencore has revealed that it made steady progress in the first quarter of its new financial year, despite operating in what it described as a “challenging trading environment”.
The group’s total revenue increased by 1.8% to £367.8m over the 13 weeks to 27 December. Adjusting for acquisitions and site exits, the figure increased by 0.7%.
Reported revenue in Greencore’s core food-to-go business rose 4.5% to £240.9m, boosted by its Freshtime acquisition. Pro forma revenue increased by 0.5%.
Revenue in the group’s other convenience categories totalled £126.9m. This was an increase of 0.9% on a pro forma basis but reported revenue fell by 3% due to its exit from longer life ready meals manufacturing at its Kiveton facility at the start of last year.
Greencore stated that it has begun the year in line with its plan and it still anticipates a year of profitable growth.
The company added: “A strong balance sheet and improved free cash flow conversion leaves the group well placed to deliver on the medium term financial ambitions outlined at the capital markets day in September 2019.
“The group will continue to consider further organic and inorganic investment in line with its capital allocation policy and strategic objectives.”
Patrick Coveney, Chief Executive Officer, commented: “We continue to make good strides in the diverse, attractive and growing UK food to go market. Our strategy to drive growth, to deepen customer relevance and to pursue a distinctive and repeatable way of working is well embedded across the business. Following a steady start to 2020, we look forward to delivering a year of profitable growth.”
