Food to go bolsters Q3 performance at Greencore

Food-to-go sales have bolstered Greencore’s UK and Ireland business, resulting in a 1.4% growth in reported revenue in Q3.

The UK convenience foods business generated £375.9m in the 13 weeks to 29 June 2018 with year-to-date revenue rising 5.2% to £1,110.8m.

Growth in Q3 was driven by the food-to-go business, with reported revenue increasing 10.7%. This was primarily driven by increased revenue from the distribution of third-party products through its Direct to Store network. Greencore also noted a modest improvement in underlying category growth compared to Q2.

Reported revenue in other parts of the Convenience Foods UK & Ireland division decreased by 12.8% after the company exited the UK cakes and desserts sector, selling the business to Bright Blue Foods.

Overall group revenue – including the US division – rose 0.5% on a reported basis to £639.6m in the quarter with year-to-date revenue up 14% to £1,878m.

US reported revenue fell by 0.8% to £263.7m in the quarter, but year-to-date revenue rose 29.9%, driven by the former Peacock Foods business, which Greencore acquired in December 2016.

Greencore said that, in the UK, the group “continues to strengthen its commercial relationships, implements initiatives to drive profit progression and streamline its leadership structures”.

To build on this, Peter Haden, currently group COO, has been appointed to the newly created role of CEO of Greencore UK, effective on 1 October.

Greencore USA has also seen the appointment of a CEO in the form of Anton Vincent, who joined in July 2018. He has more than 20 years’ experience as a senior executive at Generals Mills, most recently as president of its snacks division.

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