Greencore Reports 19% Drop In Group Revenue In First Half
Greencore has reported a 19% drop in group revenue to £577.1 million (€668.9 million), driven by the reduction in consumer mobility as a result of tiered restrictions and lockdowns in the UK, its latest interim financial results show.
According to the group's results for the 26 weeks ending 26 March 2021, Greencore reported an adjusted operating profit of £0.2 million, adding that it maintains a 'strong liquidity position' with cash and undrawn committed debt facilities of £302 million as of the end of the period.
The company posted a Net Debt (excluding lease liabilities) of £271.3 million at 26 March 2021, a reduction of £79.2 million since the end of its full-year 2020 and underpinned by an equity placing in November 2020 raising gross proceeds of £90 million.
'Encouraging Revenue Momentum'
The group said it saw encouraging revenue momentum in the first seven weeks of its first half 2021, with pro forma revenue in food to go categories running at approximately 123% above prior year levels and approximately 14% below the equivalent pre-COVID levels in its full year 2021.
For this period the group’s pro forma revenue was approximately 64% above prior year levels and approximately 5% below equivalent pre-COVID levels in its full year 20219 results.
“This has been a challenging period for Greencore, but the consistent build in our revenues since early March as lockdown measures have eased and COVID-19 cases have fallen give us real cause for optimism," said Patrick Coveney, chief executive officer, said.
"Our focus now is on rebuilding revenue, profitability and cash flow momentum as the UK economy reopens," he said.
Greencore said it is now focused on rebuilding profitability and cash flow momentum to pre-COVID levels, supported by the revenue rebuild, the unwind of COVID-19 operating constraints and effective execution against new business opportunities
"Our recent business wins are a great endorsement of our continuing relevance in the UK convenience food landscape," Coveney said.
"Underpinned by the quality of our people, our new sustainability strategy and the strength of our long-standing customer relationships, we are confident of being able to build back the business rapidly and profitably, and are optimistic about the medium-term prospects for Greencore,” he added.