Meal-deal sales help drive increase in Greencore revenue

Dalton Philips, chief executive of Greencore, said the company is showing "resilience" in the current difficult customer spending environment.  

Irish food company Greencore has seen revenues increase by 1.9% to £495.4m (€574.6m) in the three months to the end of June, driven in part by increasing sales of their premium meal deals.

The company manufactures convenience foods, such as sandwiches and salads, for retail outlets. It is one of the largest suppliers in the UK and Ireland.

In its latest trading update, the company said that its operations “delivered a solid financial and operational performance” over the last three months compared to the same period last year.

Revenue in the company’s “food to go” categories increased by 0.6% to £335.3m. The increase was primarily due to inflation recovery, in addition to "food to go" manufactured volumes being 2.0% ahead of the same period last year.

Revenue from the distribution of third-party products was approximately 1% ahead of last year due to higher volumes. 

Revenue in other convenience categories was £160.1m, a 4.7% increase year-on-year which was largely due to inflation recovery as well as the on-boarding of new business wins in ready meals coupled with a strong performance across ambient sauces.

Dalton Philips, chief executive officer of Greencore, said the results show “the underlying demand for the categories in which we operate” as well as the company’s “resilience in the current difficult consumer spending environment”.

“As we enter the fourth quarter, which is a seasonally important trading period for the business, we remain confident that the Group will deliver a full year outturn in line with current market expectations,” he said.

Mr Philips pointed in particular to the growth in meal-deal sales which the company has said has hit record highs. Over half, 52%, of Greencore’s sandwiches sold by supermarket chains are now being bought as part of a combo, compared with 46% in 2022.

The spike has been driven by rising demand for “premium” meal deals which include more items such as premium sandwiches, salads, and sushi.

Greencore cited the growing popularity of the premium meal deals as one of the main reasons its revenue has grown over the last three months.

Over the last nine months, the company’s revenue has increased 13.1% compared to the same period in 2022.

Mr Philips added that the priority for the rest of the year is to “rebuild profitability and returns to create a platform on which to build for future growth”.