Greencore tries to calm market as share prices drop

By Matt Atherton contact

- Last updated on GMT

Greencore share prices fell 41% over the past year
Greencore share prices fell 41% over the past year

Related tags: Stock market

Convenience food manufacturer Greencore has tried to reassure the market, after its share price plummeted by more than 7.5% in one week, and 41% over the past year.

Greencore said it knew of no business developments that could be responsible for the falling share price (see chart below).

The manufacturer wanted to reassure investors over its US business’s profitability, and said it was moving forward “seamlessly”​.

‘Not aware of any developments’

According to a Greencore statement: “The board of Greencore Group notes the recent weakness in its share price. The group is not aware of any developments since the release of its third-quarter trading statement on July 27 that changes the outlook contained in that statement.

“As outlined in that statement, the integration of our US business is on track and we continue to be encouraged by the pipeline of commercial opportunities being explored with existing and new customers.”

Greencore said it had refocused its site in Jacksonville, Florida on fresh products, and will stop manufacturing frozen foods at the site. But, it predicted the impact on profitability would be minimal.

Like-for-like sales up 11.8%

Meanwhile, last month Greencore reported a 77% rise in sales​ to £636.5M in its third-quarter trading update, boosted by its acquisition of Peacock Foods in the US. Group like-for-like sales increased 11.8% over the 13 weeks to June 30, and were 8.8% ahead in the year-to-date.

At the time, Greencore said that integrating the US business was on track, and it was encouraged by the “pipeline of commercial opportunities”​ it provided.

“This is a transformational period for Greencore,” ​a spokesman said, at the time. “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.”

Related topics: Chilled foods

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