Greencore has reported a 24.4% year-on-year revenue increase, driven by strong growth in its food-to-go categories – despite some impact on demand from the emergence of the Omicron COVID-19 variant in December – its first-quarter results show.
According to the convenience food firm’s latest trading update, the group’s pro-forma revenue grew by 26.4% year on year and was 7.5% above equivalent pre-COVID levels in the first quarter of 2019.
Pro-forma revenue in the firm’s food-to-go categories increased by 34.9% year on year and was 6.1% above equivalent pre-COVID levels in the first quarter of 2019.
The underlying recovery in food-to-go categories continued in the period, augmented by the onboarding of new-business wins, continued growth in the distribution component of the group’s business, and the emerging impact of inflation, the company noted.
Commenting on the performance, Gary Kennedy, board chair, said, “I am encouraged by the progress that we have made during Q1, in what continued to be a challenging trading environment.”
The group noted that it is on track with its strategic capital investment programme of approximately £30 million across three existing manufacturing sites, to support the delivery of previously announced business wins.
Revenue from these wins is anticipated to begin in the second half of 2022, it added.
“We remain focused on rebuilding our economic model effectively and sustainably with all stakeholders, thereby positioning the company for a strong future,” Kennedy added.
The uncertainty regarding the duration and impact of COVID-19 variants on the group’s trading environment, particularly on demand in its food-to-go categories, has made it more difficult to predict its full-year performance for 2022, Greencore noted.
The group has also introduced a new share ownership scheme for all colleagues, it added.
He will resign from both positions, effective 30 March 2022, to take up a senior leadership role in a different sector.
The search process to appoint a new CEO is ongoing, and an update on the appointment ‘will be provided in due course’.