Greencore Revenues Fall 34% In Third Quarter
Published on Jul 28 2020 9:10 AM
Greencore announced that its group revenue fell by 34.1% to £240.6 million in its third quarter, on the prior year.
The company said that this primarily reflected the impact of COVID-19 on food to go categories during the period.
On a pro forma basis revenue decreased by 36% during the 13 weeks from March 27 to June 26, the company said.
However, in a statement the company said that it delivered positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter.
'Develop and Re-activate'
COVID-19 has had a dramatic and volatile impact on UK food consumption patterns in the period.
The Group has partnered closely with its customers to develop and re-activate product ranges as they reopen formats and channels.
In this context the convenience food group said that it has recommenced production at its Bow, Atherstone and Heathrow facilities and has extended production at its Northampton site as demand trends improve.
"Our Group has traded resiliently, with our deep customer relationships strengthened further, and we are encouraged to see a sustained improvement in demand and category mix," said Patrick Coveney, chief executive officer, Greencore.
Food to Go
In the group’s food to go categories, reported revenue was £123.8 million in quarter three, a decrease of 50.6%.
Pro forma third quarter revenue decreased by 52.5%.
However, the company stated that revenues have recovered progressively as restrictions on population movements have eased.
According to its latest financial report, on a pro forma basis, demand in food to go categories declined by 63% in April, by 58% in May, and by 41% in June, as the group’s customers’ formats and locations have met the emerging demand.
This has continued in July to date, where revenues from the Group’s food to go categories were 35% below prior year levels.
In the nine months to the end of quarter three, reported revenue in food to go categories was £579.6 million, a reduction of 16.9% on a reported basis.
Coveney said: "We remain confident in the relevance and attractiveness of the food to go channels and categories that we serve."
"In addition, we are well positioned for new business opportunities and a return to growth as the pandemic subsides," he added.
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