31st Jul 2018 10:39
LONDON (Alliance News) - Irish convenience food firm Greencore Group PLC said Tuesday it expects good pro forma revenue growth in the last quarter of its current financial after continued progress in the first nine months.
Greencore, for the 13 weeks to June, its third quarter, posted overall year-on-year revenue growth of 0.5% to GBP639.6 million, with the figure rising 8.1% on a pro forma basis.
In Convenience Foods UK & Ireland, revenue growth was 1.4% year-on-year to GBP375.9 million, with pro forma growth 7.8%.
For Greencore's financial year to-date, revenue has growth 14% year-on-year and 8% pro forma to GBP1.88 billion, with UK & Ireland growth 5.2% reported and 8.4% pro forma to GBP1.11 billion.
Greencore said third quarter growth in the region was driven by its Food to Go business, with revenue falling year-on-year in other areas due to the sale of its cakes & desserts business in January.
The US continues to present a problem, however, with third quarter revenue falling 0.8% to GBP263.7 million, though pro forma it rose 8.6%. In Greencore's year so far, US revenue has risen 30% reported and 7.5% pro forma.
However, this was mainly driven by its late 2016 acquisition of Peacock Foods, and the original US business' has fallen 25% in the year-to-date due to volume declines.
In March, Greencore restructured its US network, ending fresh food production at a Rhode Island site and moving group Chief Executive Patrick Coveney to the US to oversee operations there, with former US Chief Executive Chris Kirke leaving the firm.
Since then, Greencore has hired Anton Vincent as Greencore US CEO, and it has also, it said Tuesday, appointed current group Chief Operating Officer Peter Haden to the new role of UK CEO, which he will begin in October.
Overall, Greencore expects good pro forma revenue growth in its final quarter ending September 29, and has reiterated its financial year guidance of adjusted earnings per share of between 14.7 pence and 15.7p, having posted a figure of 15.4p in its prior year.
Results for Greencore's financial year ending September 29 will be released on December 4. Shares were 0.8% lower Tuesday at a price of 185.50p apiece.
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