Greencore has reported another period of falling sales after demand for its core food-to-go lines was impacted by the recent restrictions and lockdowns in the UK.
The convenience food manufacturer saw its total revenue decline by 19.0% to £577.1m over the half year to 26 March, with adjusted operating profit sliding 99.5% to just £0.2m.
However, the group stressed that it was in a strong liquidity position with cash and undrawn committed debt facilities of £302m at the end of the period.
Greencore also highlighted that it had notched up new business wins in the past 12 months, supporting the rebuilding of its revenues. It added that there was “pipeline of new business opportunities being actively pursued”.
Looking ahead, the group said it saw encouraging trading in the first seven weeks of the second half of its financial year. Revenue in food-to-go categories was bouncing back, running at approximately 123% above prior-year levels. However, that was around 14% below pre-Covid levels in 2019.
Greencore also said for this period the group’s pro forma revenue was approximately 64% above the same period a year earlier and was running only 5% below equivalent pre-Covid levels.
The continued loosening of restrictions and rebuilding of revenues is expected to generate adjusted operating profit for the year above that achieved in its last financial year.
Patrick Coveney, Chief Executive Officer, said: “This has been a challenging period for Greencore, but the consistent build in our revenues since early March as lockdown measures have eased and Covid-19 cases have fallen give us real cause for optimism.
“Our focus now is on rebuilding revenue, profitability and cash flow momentum as the UK economy reopens. Our recent business wins are a great endorsement of our continuing relevance in the UK convenience food landscape.”
Grocery industry data released today by Kantar highlighted that food-to-go sales in supermarkets and convenience stores had picked up in recent weeks as people ventured out more to socialise and work.
