18th Mar 2020 10:22
(Alliance News) - Convenience food maker Greencore Group PLC on Wednesday said volumes are doing well amid the disruption caused by Covid-19 in the UK food industry.
Dublin-based Greencore is more than five months into its financial year ending late September, and it said trading has so far been broadly in line with expectations. Since Covid-19 emerged, supply chains and the production network have been fully operational.
However, in the past 10 days Covid-19 has had a "more pronounced" impact on the UK food industry, Greencore said.
"While much is changing across UK society in response to the pandemic, it is apparent that the maintenance of a robust food system - at a manufacturing, distribution and grocery store level - will be an increasingly critical part of the national infrastructure, particularly as footfall reduces in foodservice and hospitality formats," said Greencore.
"Currently, from a demand perspective, group volumes are holding up well, albeit there is a pronounced change in mix across different parts of the product portfolio and across customers' store formats."
Greencore supplies chilled, frozen and ambient food for retail and food service customers in the UK.
Greencore said it is too early to predict the impact of Covid-19 on financial 2020 results. The company has "substantial" financial headroom, with access to significant cash and it has no maturing debt in the next 18 months.
Chief Executive Patrick Coveney said: "We have three priorities as we lead our group through the Covid-19 pandemic - keeping our colleagues safe, feeding the UK, and protecting our business. The health and safety of our colleagues, customers and business partners is paramount.
"We are closely monitoring all aspects of our business and are confident that we have the team, customer partnerships and protocols in place to maintain food supply through this uncertain period."
Shares were down 4.7% on Wednesday morning in London at a price of 95.24 pence each.
By George Collard; [email protected]
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