Wednesday 21 March 2018

Greencore sales hit nearly €500m despite "challenging" UK market

Greencore Group's CEO Patrick Coveney speaking at the AGM in the Crowne Plaza hotel.
Greencore Group's CEO Patrick Coveney speaking at the AGM in the Crowne Plaza hotel.

Paul O'Donoghue

Irish food company Greencore has seen its revenue increase by 6.2pc to £346.5m (€487m) in the 13 week period to 26 June, the company’s third financial quarter of the year.

In a trading update published this morning the firm said that since the start of its financial year it has recorded revenue of £986.3m, 4.2pc ahead of the previous year on a reported basis and 4.7pc ahead on a like for like basis.

The company’s convenience foods division grew by just over 6pc on a like for like basis, with sales of just over £330m in the third quarter.

In the financial year to date revenue in the division was just under £950m.

The ingredients and property division of the company recorded turnover of £14.6m in the third quarter while in the US, like for like revenue was 22.1pc higher than the year beforehand. 

The company said that the growth in the US was mainly driven by “the roll out of new lines with our principal customers.”

In a statement the company said: The core UK grocery retail market remains challenging with high levels of change.  The combination of modest deflation in ingredients and packaging costs, together with price investment by grocery retailers, has resulted in value growth lagging behind volume in a number of our product markets. 

“The group remains focused on delivering exceptional standards for its customers and on the execution of complex capacity increase projects in both the UK and US.”

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