View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
July 28, 2020

Greencore enters deal for molasses unit, issues Q3 trading update

Greencore has announced this morning (28 July) it plans to sell its molasses business, and also issued a trading update.

By Dean Best

Greencore, the Ireland-based convenience foods manufacturer, plans to sell its molasses businesses to United Molasses Marketing.

London-listed Greencore, one of the largest private-label suppliers in the UK, said this morning (28 July) it has signed a conditional agreement with United Molasses Marketing and its Ireland-based division for the former to acquire the business for a cash consideration of GBP15.6m (US$20.1m).

Its molasses unit is involved in the import and distribution of animal feed across the island of Ireland, the company said in a statement.

Greencore added it will use the proceeds from the sale, which is subject to the approval of the relevant anti-trust authorities, to strengthen its balance sheet.

The company also issued a trading update this morning for the third quarter running to 26 June, and said annual guidance – withdrawn in March – remains suspended due to the uncertainties from the pandemic.

Greencore said revenue fell 34.1% in the quarter to GBP240.6m, with the food-to-go segment down 50.6%, while its other convenience food categories were up 2.2%.

Over the nine-months, reported revenue dropped 10.6% to GBP953.3m and food-to-go declined 16.9%. Other categories rose 1.4%.

On a pro-forma basis, Greencore said its third-quarter revenue dropped 36% but was “23% below prior year levels in July to date”

The group pointed to “encouraging sequential improvement of demand in food-to-go categories through Q3 and into Q4”.

Over the first nine months of Greencore’s financial year, reported revenue dropped 10.6% to GBP953.3m and food-to-go declined 16.9%. Other categories rose 1.4%.  

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every other month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy


Thank you for subscribing to Just Food