Greencore Sees Food-To-Go Revenue Fall By 22% In Full Year 2020
Greencore's food-to-go operations saw a 22% drop in revenue in full-year 2020, its latest trading update showed.
However, according to the the convenience foods firm, the final quarter of the year showed some signs of improvement.
The groups food-to-go business was down 28% in the final quarter of the year, compared to a 53% drop in the third quarter.
The trading update was published following the completion of the group's financial year, on 25 September, and ahead of the publication of its full-year results on 24 November.
The company said that it expects to announce reported revenue of around £1.265 billion, with pro forma group revenue down 19% in the fourth quarter alone.
It also anticipates adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of £85 million, following around £10 million worth of non-recurring COVID-19 related operating costs.
“The fourth quarter of our financial year has seen an ongoing improvement in demand for our products," commented Patrick Coveney, Greencore chief executive.
"I am hugely proud of the way that our people are supporting each other and our customers during this extraordinarily challenging period, and it is their hard work and dedication that is driving a resilient and improving trading performance."
The M&S sandwich maker said that its Northampton site, which was forced to temporarily cease production in August due to COVID-19, is now fully operational once again.
Greencore said that following a decisive response to the impact of COVID-19 in quarter three, the board of Greencore is encouraged by the progress seen in the final quarter of its full year 2020.
While fully recognising the uncertainties that lie ahead, the group said that it is well placed to continue to build back the business in full year 2021.
Coveney said: "Our agile business model, the depth of our customer relationships and the strength of our product range has enabled us to already capitalise on new business opportunities that will help underpin the build back in Group revenue."
"We are realistic but also confident in our plans for FY21, and remain excited by Greencore‘s longer term prospects,” he added.
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