US acquisition boosts Greencore sales 77%
Greencore was “encouraged” by the growth of its Convenience Foods US division, after it reported sales growth of 393.3% in the 13 weeks to June 30 – up to £265.9M. Group like-for-like sales increased 11.8% over the 13 weeks, and were 8.8% ahead in the year-to-date.
A Greencore statement read: “Reported revenue growth primarily reflects the acquisition of Peacock Foods at the end of December 2016. Progress with our consumer packaged goods customers (in the business formerly known as Peacock Foods) continues to be encouraging.
‘Encouraging’
“This volume growth, which is a more meaningful indicator of underlying performance, was driven by good category growth and the expansion of our Carol Stream, Illinois, facility to cater for a contract win in meal kits.”
Integrating the US business was on track, Greencore said, and it was encouraged by the “pipeline of commercial opportunities” it provided.
Greencore’s UK & Ireland convenience division reported a like-for-like sales rise of 15.3%, driven by its food-to-go business. More than 60% of the divisional revenue came from food-to-go, the manufacturer said. Sales were also boosted by business wins with several of its largest customers.
Challenging trading conditions
The manufacturer said its targets remained on-track for the remainder of the financial year, taking into account challenging trading conditions in the UK.
“[The fourth quarter] is the most seasonally important period for Greencore in both the UK and the US,” said Greencore. “This year, the step up in activity is expected to be even more significant given the integration of Peacock Foods.
“This is a transformational period for Greencore. The Group is confident that this exciting phase of operational and network investment will allow it to take full advantage of its exposure to higher growth categories and, in turn, to enhance Group profit, cash flow, and returns.”
