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Greencore Sees Revenue Up In Q3 Despite Cost Inflation

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Greencore Sees Revenue Up In Q3 Despite Cost Inflation

 

 

Greencore announced that its revenue saw a positive growth of 1.9% in the third quarter, reaching £495.4 million (€573.39 million), despite challenging conditions in consumer spending. Within the food-to-go categories, revenue increased by 0.6% to £335.3 million (€389.4 million), showing an impressive pro-forma revenue growth of 8.1%.

The increase in revenue was mainly attributed to inflation recovery and a 2.0% rise in manufactured volumes in the food-to-go segment compared to the same period last year. Additionally, revenue from the distribution of third-party products was approximately 1% higher than the previous year, primarily due to increased volumes. Reported revenue in other convenience categories amounted to £160.1 million (€185.9 million), reflecting a significant 4.7% year-on-year increase or 12.1% on a pro-forma basis.

Greencore credited its strong performance to the addition of new business wins in the ready meals category and the success of ambient sauces. Despite managing cost inflation through ongoing recovery and mitigating actions, the rate of inflation is slowing down in some areas.

The company emphasized that the fourth quarter of the year is a crucial period for its operations. It anticipates achieving year-on-year profit and cashflow progression in the second half of the year.

According to Dalton Philips, the CEO of Greencore, the food-to-go category remains highly relevant to consumers dealing with the cost-of-living crisis. He highlighted that 52% of supermarket sandwiches are now purchased as part of a meal deal, compared to 46% the previous year, indicating its growing popularity and perceived value.

Looking ahead, Greencore is confident in delivering results in line with current market expectations as it enters the seasonally important fourth quarter of the trading year.

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