A strong performance in its US operations helped lift Greencore's sales by 4.4% on a like-for-like basis in Q1 2015, according to accounts just filed by the convenience foods giant.
Revenues for the period, to December 26th, stood at €445 million.
Its US-based operation, which supplies major customers such as Starbucks and 7-Eleven saw total revenues rise 34.1% during the period, with like-for-like growth of 19.5%.
A new facility at Rhode Island, which wool consolidate the group's activity in the Northeastern US, is scheduled to open in Q2 as planned.
Commenting on its performance, Darren Shirley at Shore Capital Stockbrokers said, "Greencore’s stock is trading on a September 2015F PER of 17.1x and an EV/EBITDA multiple of 12.3x, with a dividend yield of 2.1%.
"We believe the EV/EBITDA rating looks demanding, though we also believe UK growth will continue to benefit from the strong growth in the Food-to-Go/convenience markets, with the US opportunity well underpinned by the strengthening relationship with key customers (Starbucks and 7-Eleven), investment in Rhode Island and the initial foray to the West Coast in 2016."
Greencore did, however, describe its core UK market as 'challenging'.
© 2015 - Checkout Magazine by Stephen Wynne-Jones
