Shares at Greencore fell by over 5% as its better than expected trading update failed to impress investors, according to The Irish Examiner.
The Dublin-based food group recently reported a 0.5% increase in revenue on a reported basis and indicated at a recovery in its US businesses.
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However, the group’s poor performances over the year across the Atlantic led chief executive Patrick Coveney to admit that more effort was needed to rebuild investor confidence.
This was then followed by a profit warning that knocked shares back 30% two months later. The group lost €340 million in market value as a result.
The group has looked to acquisitions and partnerships to help recover in the US, which has already seen a positive impact.
The group acquired the former Peackock Foods business which reached double-digit growth in the first half of the year. Greencore attributed the business as the main driver towards its 8.6% increase in revenues (pro forma) in the US.
The Examiner also revealed that in the first nine months of the year the group’s US revenues are up almost 30% to £767.2 million (€860.8 million).
It also announced, along with its trading update, that Anton Vincent will become the new chief executive of Greencore’s US operations.
© 2018 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition.