Greencore is anticipating a positive year ahead, on the back of an interim management statement covering the company's Q1 period (October 1st to end December), released this morning.
Greencore recorded revenue of £320.5m for the 13 weeks to 27 December 2013, an increase of 7.2% versus the prior year. On a like for like basis (excluding the desserts activity which was sold to Müller Dairy UK Group in January 2013 and in constant currency), revenue growth was 9.0%. The Convenience Foods division recorded revenue of £305.6m, 6.9% higher than in the prior year on a reported basis. On a like for like basis (excluding the desserts activity which was sold to Müller Dairy UK Group in January 2013 and in constant currency), revenue growth was 9.1%.
Commenting in advance of the release, Davy analyst Cathal Kenny said that "FY 2014 is shaping up to be another year of operational and financial progress" at Greencore, with customer alignment "continuing to strengthen."
"The outlook statement in the FY 2013 results noted that the group had entered the current financial year with good momentum," said Kenny. "We expect little deviation from this in the upcoming IMS. […] We still think the shares can perform but they may draw breath given the scale of the recent (last six months) price appreciation."
Kenny noted that the food-to-go business in the UK "continues to be the dominant source of value creation for the group."
© 2014 - Checkout Magazine by Stephen Wynne-Jones
