Greencore Group Steady progress in Q1; FY20 outlook reaffirmed

Greencore Group plc (LON: GNC), a leading manufacturer of convenience foods in the UK, today issued a trading update covering the 13 weeks to 27 December 2019.

Q1 Trading¹

Group revenue increased by 1.8% to £367.8m in Q1 in what continued to be a challenging trading environment. On a pro forma basis, adjusting for acquisitions and site exits, revenue increased by 0.7% in the quarter.

Q1 revenue in the Group’s activities in food to go categories totalled £240.9m. Pro forma revenue increased by 0.5%. Reported revenue in Q1 increased by 4.5% reflecting the impact of the Freshtime acquisition which performed well during the quarter.

Revenue in the Group’s other convenience categories totalled £126.9m in Q1, increasing by 0.9% on a pro forma basis. Reported revenue decreased by 3.0% reflecting the exit from longer life ready meals manufacturing at the Kiveton facility in H1 19.

Outlook

The Group has started the year in line with plan and continues to anticipate a year of profitable growth in FY20.

A strong balance sheet and improved Free Cash Flow Conversion leaves the Group well placed to deliver on the medium term financial ambitions outlined at the Capital Markets Day in September 2019. The Group will continue to consider further organic and inorganic investment in line with its capital allocation policy and strategic objectives.

The Group will report its FY20 Interim Results on 19 May 2020.

Commenting on the performance, Patrick Coveney, Greencore Group Chief Executive Officer, said:

“We continue to make good strides in the diverse, attractive and growing UK food to go market. Our strategy to drive growth, to deepen customer relevance and to pursue a distinctive and repeatable way of working is well embedded across the business. Following a steady start to 2020, we look forward to delivering a year of profitable growth.”