28th Jan 2014 09:07
LONDON (Alliance News) - Irish convenience-foods manufacturer Greencore Group PLC Tuesday said it has had a good start to the year, having recorded revenue growth of 7.2% for the 13 weeks to December 27, 2013, and remains confident in meeting full-year market expectations.
The group said that as economic conditions in the UK are steadily improving, although the improvements are yet to be seen in larger grocery stores, it has seen more buoyant activity in small stores and in product categories, such as food-to-go.
Greencore recorded revenue of GBP320.5 million for the 13 weeks to December 27, 2013, an increase of 7.2% versus the prior year.
The group said on a like-for-like basis, excluding the desserts business which was sold to Müller Dairy UK Group in January 2013, and in constant currency, revenues increased by 9%.
It said its convenience foods division recorded revenue of GBP305.6 million, 6.9% higher than in the prior year on a reported basis, and 9.1% higher on a like-for-like basis.
In the UK, like-for-like revenue was up 7.2% on last year, supported by strong growth in its food-to-go activity.
Greencore said during the period it invested in significant re-launch activity with several key customers, and continues to develop a pipeline of future growth opportunities for 2015. It said its expectations for input cost inflation remain unchanged at around 3%, with pressure in proteins and dairy.
In the US, Greencore said revenues rose by 26% during the period on a constant currency basis, boosted by the commencement of a Starbucks Corp supply agreement.
Greencore said its ingredients and property division, which now represents less than 5% of the group's overall activity, recorded revenue of GBP14.9 million for the 13-week period, almost 14% higher than the prior year in reported currency, and 8.5% higher on a constant currency basis.
The company said its financial position remains strong with good headroom within existing debt facilities.
It said it intends to release its interim results on May 20.
Greencore shares were up 2.6% Tuesday morning, trading at 245.40 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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