Greencore has posted a pro forma basis, revenue increase of 0.8% in its third quarter.
However, reported revenue from continuing operations was £365.0 million (€398.9 million) for the period which shows a decrease of 2.9% on the prior year, its trading update which covers the 13 weeks to 28 June 2019 showed.
In a statement, the convenience food manufacturer said the fall was ‘primarily reflecting the ‘impact of site disposals and business exits’.
Year to date, the Group’s reported revenue from continuing operations was £1,066.4 million, a decrease of 4.0% on the prior year on a reported basis.
On a pro forma basis, revenue increased by 3.8%.
Food To Go
In the group’s food to go categories, reported revenue was £250.6 million in Q3, an increase of 0.6% on both a pro forma and reported basis, all driven by underlying product revenue growth, the report showed.
This growth reflected weak market conditions with unseasonal weather, a varied trading performance across the customer portfolio, set against a strong comparative period. Year to date, reported revenue in food to go categories was £697.8 million, an increase of 4.6% on both a pro forma and reported basis.
Convenience Food
Reported revenue in the Group’s other convenience food categories totalled £114.3 million in Q3, an increase of 1.4% on a pro forma basis, and a 9.8% reduction on a reported basis again reflecting the impact of site disposals and business exits.
According to the groups latest results, year to date, reported revenue was £368.6m, an increase of 2.3% on a pro forma basis and a 16.9% reduction as reported.
Underlying free cash generation for the Group in Q3 was in line with expectations.
US Business Disposal
On the 25 of November, 2018 Greencore said that it completed the sale of its entire US business Hearthside Food Solutions LLC.
'A profit on disposal of £56.7 million was reported in the first half of 2019 to reflect this transaction', the group highlighted in a statement.
Following the disposal, the group fully reset its capital structure.
The group returned £509 million of capital to shareholders in the form of a tender offer, executed on 31 January 2019.
Outlook
Looking ahead, the group said that overall it is 'performing well against its strategic and financial objectives, despite the soft underlying revenue growth in Q3'.
© 2019 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click sign-up to subscribe to Checkout.
