Increasing Demand For Food-To-Go Products Drives Growth At Greencore Results

Convenience food business Greencore saw its turnover increase 7.5% on a constant currency basis to £691.6m during its first half to 25 March 2016, driven by strong demand for food-to-go products. Group operating profit rose 8.5% to £43.5m with margins unchanged at 6.3%.

Within its core convenience foods division, turnover was up 7.8% to £667.9m with operating profit growing 9.2% to £42.9m. The group said its focus on growing its leadership in the food-to-go segment in the UK and US continued to bear fruit with strong like-for-like revenue growth in its food-to-go businesses up 12.7%. In the UK, its food-to-go business increased 13.1%, well ahead of the underlying market which grew 5.6%.

In its prepared meals business, which accounts for 20% of group revenue, sales rose 1.6%. Meanwhile, its grocery business, which provides meal components, saw sales rrise 1.7%.

Commenting on the results, Patrick Coveney, Chief Executive Officer, said: “Greencore has performed strongly in the first half of the year. Our strategy of focusing on the UK and US food to go markets is working well and we are continuing to invest in capacity and capability initiatives to support the substantial future growth pipeline. We are confident of further progress in the months and years ahead.”