Greencore sales steady despite downturn

The owner of the world’s biggest sandwich making plant today said trading had been “solid” in the face of deteriorating consumer conditions.

Convenience foods firm Greencore said underlying sales at its main division rose 7.2% in the four months to July 31, up from 6% in the first half of its financial year.

Price rises to combat higher costs accounted for 4.2% of the increase, alongside a 3% rise in volumes.

The convenience foods division comprises around three quarters of group sales and supplies retailers such as Tesco and the UK's Asda as well as garages and airlines. It also makes ready meals for WeightWatchers and Heinz.

Earlier in the year the group said it expected to suffer a hit of €57m from higher food costs this financial year with its recovery “centre stage on our commercial agenda”.

Dublin-based Greencore, which has signed a 10-year deal licence to develop a chilled range of food under the WeightWatchers brand in the US, said it was on track to meet market expectations for this financial year to September.

Although underlying sales in convenience “remained solid” in the four months to July“, Greencore warned: ”Consumer sentiment...has deteriorated markedly since June and poor weather has also impacted demand.“

It also noted there were a number of “seasonally important” trading weeks remaining in the current financial year.

Greencore also operates an ingredients business – mainly producing malt for brewers – and a food distribution business. These were trading “well”, the group said.