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Greencore revenue up but faces tough 13

Tuesday, January 29 10:28:55

Irish food group Greencore today posted revenue of £285.8 million for the 13 weeks to the end of the December, a 2.5pc increase on the same period in 2011 but warned of a tough year ahead at its core UK market.

It said that this revenue growth reflects both the contribution from acquisitions in the period but also the impact of business its sold off, notably in the former Uniq chilled desserts activity in Britain.

In the UK, revenue was in line with prior year on a like for like basis (that is excluding both the acquisition of the International Cuisine business acquired in August 2012 and the impact of the restructuring of the chilled desserts activity acquired as part of Uniq).

It said that this reflects both a challenging UK food market where growth rates across its categories have moved down in line with the overall market and also a tough comparator period in 2012 when the business recorded 11.8pc growth in the 17 weeks to 27 January 2012.

The restructuring of the Uniq desserts business has now been completed, the statement said.

During the period, it also announced that it had completed the disposal of its Chilled Desserts facility in Minsterley to the Muller Dairy UK Group.

In the US, revenues have more than doubled reflecting the acquisitions of MarketFare Foods and Schau partly offset by extensive portfolio rationalisation in the original business, principally at the Newburyport facility, in order to improve returns. "The acquisitions have performed well in the period with underlying double digit revenue growth. The business has also successfully commenced supply to Starbucks in the greater Boston area during January."

Greencore's ingredients and property division, which makes up about 6 per cent of its revenues, saw revenue of £13.1 million, 11.6 per cent lower than the same time last year.

In its outlook for the coming year, the company said market conditions continued to be challenging, particularly in the core UK market which showed little or no volume growth.

"We expect this to remain the case for the foreseeable future," it added.