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Sunday 22 July 2018

Greencore 'unaware' of reason for shares fall

Greencore chief executive Patrick Coveney
Greencore chief executive Patrick Coveney
Ellie Donnelly

Ellie Donnelly

Greencore yesterday reassured investors that the integration of US acquisitions was going well and said it was "unaware" of any developments that would change its outlook for the business.

The unusual move was prompted by Greencore's weak share price. The company said it was not aware of any developments since the July 27 release of a third-quarter trading statement that would change the outlook contained in that statement.

On July 27 Greencore shares traded at 232.00 pence in London - by late afternoon yesterday they were changing hands at 197.60 pence each. Despite the attempt to reassure investors, the stock was weaker yesterday.

The group, led by CEO Patrick Coveney, said that the integration of its US business was on track and it continued to be "encouraged by the pipeline of commercial opportunities being explored". Greencore noted there had been "some level of churn" in the legacy retail part of the US business.

Specifically, Greencore has decided to refocus its Jacksonville, Florida site on fresh product offerings and will halt frozen product production there.

Greencore said that this change is "being managed seamlessly with the relevant customers and the Board anticipates that the impact on profitability will be minimal".

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