Greencore revenues rise as meal deal sandwich sales spike

Greencore confirmed an almost 2% revenue rise during Q3 of the 2023 financial year as it looks to rebuild profitability in the near term.

This translates to a pro forma revenue increase of 9.3% when compared to a year prior. This was driven by 8.1% pro forma revenue growth in food to go and a 12.1% pro forma increase in other convenience categories.

The ‘pro forma revenue’ adjusts reported revenue to exclude the additional week of trading in financial year of 2022 (FY22) accounting period and present revenue on a constant currency basis.

The news comes amid research by Greencore which shows that 52% of sandwiches purchased in supermarkets are bought as part of the meal deal. This represents a 46% increase year-on-year, with the increasing number of “premium meal deals​” on offer playing a role.

As of 30 June 2023, Greencore’s food to go revenue sits at £335.3m, while overall group revenue is £495.4m. In FY22, the group manufactured 795m sandwiches and other food to go products.

Food to go ‘hugely relevant’

Reflecting on the results, chief executive Dalton Philips said that the results were encouraging and represented the resilience of the firm despite current market conditions.

“The food to go category remains hugely relevant to consumers as they contend with the cost-of living crisis, and it is particularly notable that 52% of supermarket sandwiches are now bought as part of a meal deal, up from 46% this time last year​,” Philips said.

“We are delighted that our core category is playing such a key role in feeding the UK, and in a way that represents such good value​.”

Meanwhile Andy Parton, chief commercial officer of Greencore, hailed the meal deal as a “foodie phenomenon​” given its growing popularity.

Parton said: “While meal deal purists will undoubtedly remain wedded to their sandwich, crisps and coke, products like premium sandwiches, salads, and sushi are bringing greater finesse and complexity to our lunchtime menus. As the nation’s tastes evolve, so does Greencore​.”

In other news, Unilever said it is unlikely to lower prices despite inflation levels in the UK​​.