Greencore Group profits up following business reset

Earnings and operating profit at food-to-go business Greencore have risen following a major restructure of the business last year.

The company reported a 2.6% increase in revenue to £1,446.1m, driven by a 3.3% increase in food-to-go, in its full-year results for the year ending 27 September 2019.

Adjusted EBITDA rose 1.4% to £142m over the period, with adjusted operating profit up 0.9% to £105.5m.

The results follow a ‘reset’ of the company last year, with it disposing of its entire US operation, as well is selling its cakes and desserts business in Hull to Bright Blue Foods and closing its desserts operation at Evercreech.

Greencore said that, this year, it had refocused on its convenience food business in the UK and Ireland, which it looked to grow by broadening the group’s product range and enabling consumers to buy more in existing space and new channels and formats.

“The group launched multiple commercial projects with key customers, including product launches in salads, sushi and chilled snacking and bespoke café channel initiatives,” stated the business in its results.

It explained that, in the latest financial year, 47% of the group’s products in the UK were new to market as it worked with customers on product or packaging development initiatives.

Greencore has also been exploring new areas, including hot food and event-specific vending. In September, it acquired Lincolnshire-based Freshtime to extend its presence in meal salads and chilled snacking.

“Over the past 12 months, we have fundamentally reset our business, anchored by a clear strategy to drive shareholder value by expanding our category and channel capabilities within the diverse, growing and attractive UK food-to-go market,” said Greencore chief executive Patrick Coveney.

“The evidence of this can be seen in the launch of multiple commercial and innovation projects with key customers, and in the recent acquisition of Freshtime.”

Greencore added that it expected a year of profitable growth in FY20, with mid-single-digit organic revenue growth.

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