Chilled food manufacturer Greencore has now reached “the necessary scale to deliver meaningful profit growth”, says City analyst Panmure Gordon.
Pammure’s Damian McNeela said that following its merger with Uniq, the firm had emerged as “a leading supplier in the UK private- [own-] label food sector and should be well placed to capitalise on the established growth trends in the sector.”
The firm’s recent US acquisitions – including sandwich and sushi business HC Schau – plus a $50M contract win put the firm on track to deliver free cash flow of £53.5M in financial year 2014.
The UK convenience food sector continues to deliver resilient growth ahead of the wider socio-demographic trends, said McNeela. “Greencore’s broad customer base and market leading positions in these relatively higher growth categories should ensure that it is well-placed to capture market share and drive incremental category growth through new product innovatins,” he added.
For more on Greencore’s recent US acquisitions, click here .