13th May 2022 18:22
(Alliance News) - Greencore Group PLC's new chief executive brings a wealth of experience that can help fill the void left by predecessor Patrick Coveney at the convenience food maker, according to Shore Capital.
Greencore on Friday hired Dalton Philips as CEO and board director. Philips replaces Coveney, who left Greencore at the end of March to become CEO of SSP Group PLC, an operator of food outlets in travel locations such as train stations.
Philips joins from daa PLC, an airports and travel retail group that is based at Dublin Airport. Further, Philips has been CEO of daa since 2017. From 2010 to 2015, he was CEO of UK grocer Wm Morrison PLC, before it was acquired by orivate equity firm Clayton, Dubilier & Rice last year.
Shore Capital said Philips "is a business leader of considerable experience" and has "undoubtedly gained considerable insight, learning and experience through his distinguished career to date".
It added: "[His] time at Morrisons corresponded with one of the toughest times in recent British grocery market history when the major superstore groups faced into a material squeeze on household living standards alongside the peak disruptive influence of the German discounters' advance in the UK market, causing notable managerial, strategic and financial disruption across the trade.
"Such a skill set to us represents material barriers to entry and replacement capital cost, so a strong platform for Greencore to see through its recovery in margin in the current time of pandemic normalisation and to press on thereafter; a programme of work that if delivered against our forecast makes the stock look especially good value out to FY24."
The stock closed flat at 109.90 pence in London on Friday.
Shore Capital acts as a corporate broker for Greencore Group.
By Arvind Bhunjun; [email protected]
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