UK fresh food company has said it expects total sales growth of over 10% in the first half, reflecting continued growth in demand for fresh prepared foods in both the UK and Continental Europe.
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In the UK, sales of fresh prepared foods are expected to be more than 5% ahead of last year. Geest said this rate of sales growth is accelerating following a number of new business gains and the increasing consumption of prepared salads year on year.
In Continental Europe, sales growth for fresh prepared foods is expected to be over 15%, before the additional effect of Geest’s latest acquisition, Crudi.
Geest’s whole head produce business is expected to see an increase in sales of over 10% in the first half.
Underlying operating profit is expected to show clear growth in the first half, albeit not as high as sales growth due to the continuing, although diminishing, losses in the pasta business and the acquisition of Crudi.
Geest said it is on track to spend some £50m (US$81.3m) on capital expenditure this year to reflect the growing demand for fresh prepared foods.
The company said it is trading in line with the board’s expectations in the current year and expects to benefit further next year from continued growth in consumer demand, increased capital efficiency and strong customer and market positions.
