Greencore’s Strong Interim Performance Driven by Food to Go Businesses
Greencore Group, the leading Irish and UK convenience food producer, has reported an 8.2% increase in revenue to £619.8 million for the 26 weeks ended 28 March 2014 with operating profit up 14% to £37.2 million compared to the corresponding period in 2013. Operating margin at 6.0% was 30 basis points higher than in the first half of 2013.
Greencore’s UK and US food to go businesses combined delivered excellent like for like revenue growth in the half of 18.9%. In addition, both the UK Prepared Meals and Grocery businesses have delivered steady performances during the period against the backdrop of extremely competitive grocery market conditions.
In the UK, Greencore’s food to go business has maintained the strong revenue momentum seen in the last quarter of 2013. Greencore is now planning a multi-year investment of £30 million in its Northampton facility to service a new business award in the chilled sandwich category and to underpin specific future growth opportunities with the same customer.
Patrick Coveney, chief executive of Greencore.
In the US, following the commencement of supply to a major new customer in the 2013 financial year, Greencore has announced three further developments during the first half of 2014. It has acquired Lettieri’s, a leading manufacturer of frozen food to go products for the convenience channel, and is investing approximately £6 million in its Jacksonville facility to manufacture frozen food to go products supporting a key customer. Greencore is also constructing agreenfield sandwich manufacturing facility in Rhode Island for £20 million which will facilitate the closure of existing leased sites in Newburyport and Brockton, Massachusetts.
Patrick Coveney, chief executive of Greencore, comments: “The business delivered a strong first half performance, driving 18.6% EPS growth. Our strategy of focusing on the food to go market is working well in both the UK and the US. Over the past six months we have stepped up our strategic investments in Minneapolis, Jacksonville, Rhode Island and Northampton to support confirmed new business with several large customers. These investments, as well as the strong trading momentum that we are seeing across our group, have left us well positioned for further growth in the months and years ahead.”
