Irish food group Greencore has continued to make gains despite worries regarding supply chain disruptions and rising inflation.
The sandwich and convenience food maker saw revenues jump 33.6% for the first half of the year up to May 25, compared to the same period last year. The group's revenue now stands at £770.8m (€898.6m).
The group's food-to-go category — largely comprising busy consumers and office workers grabbing pre-packed products — recorded revenues up 48.0% year on year and were approximately 8% above equivalent pre-Covid levels in the first half of 2019.
Greencore also reported significant improvements in the groups profitability, as it recorded an adjusted operating profit of £17.2m (€20m), up from £0.2m (€0.23m) in the first half of 2021.
“We are very pleased to have delivered H1 revenues that are back above pre-Covid levels, which is a great achievement against a backdrop of mobility restrictions, supply challenges and emerging inflation," said Gary Kennedy, Executive Chair.
"There has been encouraging momentum in revenue and profit conversion in the first seven weeks of H2, and we are confident in our ability to navigate our way through the current well-publicised macro challenges as we enter our peak seasonal trading period," he added.
The Irish group is the largest maker of pre-packed sandwiches in Britain and is a key supplier to the likes of Tesco, Marks and Spencer, Waitrose, and Sainsbury’s.
Earlier this month the group announced the appointment of Dalton Philips as Chief Executive Officer and Executive Director. Phillips is set to join the group and the board on 26 September 2022.
Greencore said that notwithstanding the volatile inflationary environment, the group expects to generate an annual outturn in line with current market expectations.
The group also announced their intention to recommence value return of up to £50m over the course of the next two years. It stated that initially, this would occur through "a share buyback programme" and would be "consistent with the Group’s capital management policy."