Firm’s optimistic outlook for UK growth
As part of its first-quarter trading update — for the three months to the end of December — issued yesterday, the Dublin-based convenience food group said that the grocery retail environment in Britain remains challenging, but growth in the smaller store format is aiding growth in its food-to-go product category.
The quarter saw a 7.2% like-for-like increase in Greencore’s UK revenues.
On a group-wide basis, revenue for the period was up by 7.2%, at £320.5m (€389m), year on year.
On a like-for-like/constant currency basis (excluding the sale of its desserts business last year), revenue growth was measured at just over 9%.
In the US, constant currency first quarter revenue was up by 26.2% year on year.
Management summed up by saying the group has had a good start to its current financial year, adding that “we remain confident in our ability to deliver financial performance for the year in line with market expectations.”
There will be an ongoing focus on strengthening its ‘food-to-go’ category, improving production and distribution initiatives and scaling up its US business.
Regarding land sales, CEO Patrick Coveney said that the company is hopeful of agreeing the sale of its 125-acre land bank, at Littlehampton in southern England in the summer.
At yesterday’s agm, Mr Coveney was also asked how different Greencore would be if it had succeeded in buying UK company, Northern Foods in 2011, instead of missing out.
He replied that the subsequent acquisition of convenience food maker, Uniq had been a superb acquisition, which has made Greencore a better business. He added that while Northern may have offered greater potential, it also offered much greater risk, with a sizeable pension deficit and integrational challenges.
Yesterday’s AGM saw all resolutions passed, including the re-election of the board. While all but one of the directors received approval from nearly 100% of shareholders, Google Ireland chief, John Herlihy, ‘only’ received the backing of around 72% of investors.
