Greencore Group plc today announced a strong financial performance in Q1, in a trading update for the 13 weeks ending 29 December 2023.
The positive operation performance was underpinned by good customer service levels (99.2%) and improved profit conversion year on year.
Like For Like
Greencore reported that revenue decreased by 4.7% in Q1 to £441.3 million.
However, by adjusting forecasts for the disposal of Trilby Trading Limited in Ireland, revenue for the group was broadly flat year on year.
On a like-for-like (LFL) basis, revenue increased by 5.8% in the same bracket.
Total manufactured volumes for the quarter declined by 4.8% due to a decision by Greencore to exit contracts that were delivering ‘sub-optimal returns’ in the previous financial year.
But on an LFL basis, manufactured volumes were up by 0.5% overall, with the four weeks leading to 24 December reporting LFL volumes up by 5.6% compared to an overall market performance of 1.8%.
The group said its decision to exit contracts, including a chilled ready meals contract, accounted for approximately a 6% decrease in adjusted revenue predictions.
The focus instead shifted to ongoing commercial, operational and cost initiatives, with significant attention paid to innovation and an optimal product mix.
Greencore has said it has a more stable cost outlook for the 2024 financial year due to inflationary pressures on raw materials and energy easing.
Speaking on the report, chief executive of Greencore Dalton Philips said, “This performance has once again been supported by our outstanding operational service levels to ensure availability of products to our customers.
“We are committed to continuing to drive profitability through commercial discipline and are investing in several initiatives to develop a robust platform for future growth.”
Catherine Gubbins will be taking over as executive director and chief financial officer on 6 February, with her predecessor Jonathan Solesbury staying on until the end of May to ensure a smooth transition.
Greencore will report its 2024 financial year interim results for the half year ending 29 March 2024 on 21 May 2024.