Greencore has posted a 3.5% decrease in sales to £1.45 billion (€1.69 billion) in full-year 2019.
The group said that its most recent financial results primarily reflected the impact of site disposals and business exits, however subdued consumer sentiment was also a factor.
Pro-forma revenue growth at the business was 2.6% for the year, while adjusted operating profit was up 0.9% to £105.5 million (€123.3 million).
The group said that its full-year performance was delivered 'against the backdrop of a subdued UK trading environment', with consumer demand 'cautious' due to the uncertainty around Brexit.
Freshtime Acquisition
The convenience foods firm acquired Freshtime, a well-established supplier of meal salads and chilled snacking in the UK, in September 2019.
The group outlined that total consideration for the acquisition comprises an enterprise value of almost €62 million, cash on the acquired balance sheet and a normalised level of working capital.
"Over the past twelve months we have fundamentally reset our business, anchored by a clear strategy to drive shareholder value by expanding our category and channel capabilities within the diverse, growing and attractive UK food to go market," Patrick Coveney, chief executive officer, said:
"The evidence of this can be seen in the launch of multiple commercial and innovation projects with key customers, and in the recent acquisition of Freshtime. As a result of this reset strategy, we anticipate another year of profitable growth in FY20.”
Outlook
Greencore said in a statement that it has entered its full-year 2020 with a clear set of strategic objectives.
'These are to drive growth in an expanding food to go market, to deepen its relevance with customers, and to adopt a distinctive and repeatable Greencore Way of working' it stated.
These are underpinned by an economic model of disciplined growth and investment.
Looking ahead the group said that it anticipates a year of profitable growth in full-year 2020.
© 2018 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click subscribe to sign up for the Checkout print edition.
