Greencore has announced a strong performance in its Convenience Foods division for the three months to 24 December, 2010.
It recorded continuing business revenue of €208.7m, an increase of 7.6% on the comparable period in the 2009/10 financial year, following the disposal of its Water and Continental business in the division.
It said the performance of its two key categories - Food to Go and Prepared Meals - remained strong, “with a continuation of the favourable underlying market trends seen in FY10”, where value remains a key consumer theme.
Greencore said the increase in ingredient and packaging inflation was more pronounced than the previous financial year, and it was managing these rises through a combination of selling price increases and cost reduction initiatives.
Its board continues to recommend shareholders vote in favour of the merger with Northern Foods at the shareholder meeting on 31 January, 2011, and said it believed it represented “a compelling opportunity for value creation for both Greencore and Northern Foods shareholders”.