Greencore’s UK division drives progress
Product innovation has led to a solid quarter of trading for the Greencore Group.
The company recorded revenue of £356 million (m) in the 13 weeks to 25 December 2015, an increase of 7.2% on the previous year and of 6.8% in constant currency.
Driving the growth was the group’s UK division, with its revenue 7.9% higher than in the same period last year. It attributed the increase to last year’s business wins and product innovation.
“While the overall UK grocery retail market remains challenging, our core chilled categories continue to perform well. Our strong growth was driven by the annualisation of prior year business wins together with the impact of new product launches. The construction of a new production facility on the Northampton campus is nearing completion, with commissioning on track to commence in the spring.”
Its convenience foods division recorded revenue of £345.1m, 7.7% higher than the prior year on a reported basis and up 7.0% in constant currency.
In the US, reported revenue was 6.5% higher than in the prior year and 1.3% higher in constant currency. The division’s revenue was in line with expectations following the closure of the Brockton facility in November and the related further product and customer exits. It reported that progress continues to be made on increasing production capability in the Quonset, Rhode Island facility, while construction in Seattle is progressing to plan.
Greencore’s ingredients and property division, which now represents less than 5% of group activity, recorded revenues of £10.9m in Q1, £0.7m or 6.0% lower on a reported basis and 3.4% higher on a constant currency basis.
Overall, the group was pleased with its performance. “The business has had a good start to the year and our major investments in capacity and capability enhancement are proceeding to plan. We remain confident in our ability to deliver performance in line with market expectations.”
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