Greencore PLC: Q1 Trading Update FY-2020

Dublin / IE. (gg) Greencore Group PLC a leading manufacturer of convenience foods in the UK, issues a trading update covering the 13 weeks to 27 December 2019 (Q1/2020).

First Quarter 2020 Trading

	Revenue	Growth
	in million GBP	Reported	Pro forma
Group	367.8	+1.8%	+0.7%
Food to go categories	240.9	+4.5%	+0.5%
Other convenience food categories	126.9	-3.0%	+0.9%

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Group revenue increased by 1.8 percent to GBP 367.8 million in Q1 in what continued to be a challenging trading environment. On a pro forma basis, adjusting for acquisitions and site exits, revenue increased by 0.7 percent in the quarter.

Q1 revenue in the Group’s activities in food to go categories totalled GBP 240.9 million. Pro forma revenue increased by 0.5 percent. Reported revenue in Q1 increased by 4.5 percent reflecting the impact of the Freshtime acquisition which performed well during the quarter.

Revenue in the Group’s other convenience categories totalled GBP 126.9 million in Q1, increasing by 0.9 percent on a pro forma basis. Reported revenue decreased by 3.0 percent reflecting the exit from longer life ready meals manufacturing at the Kiveton facility in H1 19.

Outlook

The Group has started the year in line with plan and continues to anticipate a year of profitable growth in FY-2020.

A strong balance sheet and improved Free Cash Flow Conversion leaves the Group well placed to deliver on the medium term financial ambitions outlined at the Capital Markets Day in September 2019. The Group will continue to consider further organic and inorganic investment in line with its capital allocation policy and strategic objectives.

The Group will report its FY-2020 Interim Results on 19 May 2020.

Commenting on the performance, Patrick Coveney, Chief Executive Officer, said: «We continue to make good strides in the diverse, attractive and growing UK food to go market. Our strategy to drive growth, to deepen customer relevance and to pursue a distinctive and repeatable way of working is well embedded across the business. Following a steady start to 2020, we look forward to delivering a year of profitable growth.»