Greencore sales up on UK, US growth
Greencore enjoys sales growth in company's third quarter
Greencore has booked a 6% rise in third-quarter sales, helped by growth in the UK and the US.
The Ireland-based group posted revenue of GBP346.5m for the 13 weeks to the end of June, up 6.2% on a year earlier on a reported basis and when measured like-for-like.
In the UK, like-for-like sales grew 4% thanks to "good growth" from food-to-go as the company added product lines at its facility in Northampton.
Greencore said its "revenue performance was more subdued" in other categories in the UK. The private-label supplier said deflation and price investment from retailers meant value growth in the UK was "lagging behind volume in a number of our product markets".
In the US, a smaller market but one in which Greencore is building its business, like-for-like sales were up 22.1%, boosted by the roll out of new lines to customers.
For the first nine months of the company's financial year, Greencore posted revenue of GBP986.3m, 4.2% higher than a year earlier.
Greencore said it remains "confident in our ability to deliver adjusted EPS growth for the financial year within the range of market expectations".
Jefferies analyst Martin Deboo said Greencore had made "continued progress in challenging conditions".
"This reflects organic growth in UK food-to-go, Marks and Spencer contract build and ramp-up of Starbucks volumes in the US, offset by tough trading conditions in UK grocery and prepared meals," Deboo wrote. "While Greencore are now in a critical period of capacity expansion in the US, we take comfort from management focus and see the risks as more than priced in."
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