26th Jan 2021 09:43
(Alliance News) - Greencore Group PLC on Tuesday said revenue declined in its first quarter, most sharply in its food to go categories, due to tiered restrictions and lockdowns in the UK.
For the 13 weeks ended December 25, the convenience foods manufacturer reported revenue of GBP312.7 million, down 15% from GBP367.8 million the year before.
This included a 22% drop in food to go categories revenue to GBP188.5 million from GBP240.9 million and a 2.1% drop in revenue from other convenience food categories to GBP124.1 million from GBP126.9 million.
Greencore explained that its first quarter revenue had been hurt "by the reduction in mobility arising from tiered restrictions and lockdowns in the UK during the period."
The firm did achieve a positive adjusted operating profit and adjusted earnings before interest, tax, depreciation, and amortisation in the first quarter.
At present, Greencore's pr forma revenue is around 20% below the prior year level, with food to go revenue down around 35% year-on-year while other convenience categories are stable.
Right now, near term trading uncertainty continues for Greencore and guidance remains suspended, but it said it is "well positioned to build back the business rapidly as trading conditions recover."
Chief Executive Patrick Coveney said: "Although the difficult trading conditions are likely to persist in the near term, we remain confident that demand for our food to go categories will recover strongly as the effects of Covid-19 recede and mobility restrictions are removed.
"We secured a number of new business wins in the quarter and have a healthy commercial pipeline as we look forward. In addition, the operational, debt and equity measures that we have taken in recent months provide us with a strong foundation from which to navigate our way through all of the challenges of Covid-19. We are confident that we have the capability and resources to build back the business rapidly as soon as market conditions allow, and we are optimistic about the medium-term prospects for Greencore."
Shares in Greencore were down 0.4% at 116.00 pence in London on Tuesday morning.
By Anna Farley; [email protected]
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