Greencore said today (12 August) that it was in line to “modestly exceed” its target for full-year earnings after a “buoyant” summer from its convenience food business.
The Irish company, which makes a range of private-label products, said its convenience food sales had grown by 7% during the four months to 23 July. The sales increase followed a 6.1% rise in the six months to 26 March.
Greencore said an increase in convenience store formats in the UK was “underpinning” volumes from its food-to-go business, while it was also gaining share in the UK chill ready meals category.
“The overall sales growth recorded across the group’s UK portfolio in the period has been driven predominantly by volume with pricing flat overall,” Greencore said.
In the US, sales on a constant-currency basis grew by 20% in the four months to 23 July, although sales growth had slowed when compared to the first half of the company’s fiscal year.
“Sales of salads over the summer months have been slower than expected and we have been comparing against a more demanding run rate in food to go than in the earlier part of the year,” Greencore said.
Nonetheless, the company is on track to “modestly exceed” its previous forecast for adjusted EPS of approximately EUR0.16 (US$0.20) for its full fiscal year.
Shares in Greencore were up 3.5% at GBP1.33 at 09:55 BST.
