Greencore revenues up on food-to-go demand

Food group Greencore on Tuesday reported a rise in third-quarter revenues driven by its food to go and other convenience categories.

Revenues at the convenience food maker rose 35% to £486.2m in the 14 weeks to July 1.

Food-to-go sales were up 41% to £333.4m, while other categories saw a 23.5% r increase to £152.9m.

Ireland-based Greencore, which supplies a range of chilled, frozen and ambient foods to major UK food retailers, said it expected to generate an annual adjusted operating profit of between £72m - £77m, up from £39m last year and slightly below consensus forecasts of £75m - £79m.

“Inflation trends are expected to continue into FY23 and the Group continues to monitor closely the impact of the inflationary environment on consumer sentiment and demand, as well as working with customers and supply partners to mitigate the ongoing impact on consumer prices,” the company said.

The company has also commenced a share buyback programme which will see Greencore repurchase ordinary shares for up to a maximum aggregate of £10m.

"I am encouraged by the progress we have made during Q3 against the backdrop of inflationary pressures for the industry. Revenue and profit conversion through the period has been encouraging and we are confident in our ability to continue to manage the various industry challenges and end the year strongly," said executive chair Gary Kennedy.

Reporting by Frank Prenesti at Sharecast.com