Greencore’s (GNK) revenues were up 4% in the 13 weeks to 24 June, with Brexit having only a “modest” impact on the convenience food giant’s trading.
Greencore recorded revenue of £360.4m in the 13 weeks to 24 June 2016, an increase of 4% on the prior year on a reported basis and of 3.1% in constant currency.
Its third quarter performance meant that year to date sales of £1.05bn are 6.7% ahead on the prior year on a reported basis and 5.9% ahead on a constant currency basis.
Its convenience foods division recorded Q3 revenues of £349.9m, 5.4% higher than the prior year on a reported basis and up 4.6% in constant currency.
In the UK, Q3 revenue was 5.7% higher than in the prior year and 6.7% higher year to date, with growth driven by its food to go business.
It said its UK food to go business is benefitting both from new business wins reported in the year and from the impact of new product launches. It said its new sandwich capacity in Northampton has progressed in line with plan and the business is also well advanced in adding new production lines at its other UK sandwich facilities to enable the roll-out of new business wins.
Yesterday Greencore announced the acquisition of The Sandwich Factory for up to £15m from Cranswick (CWK) in a move to further boost its UK food to go capacity.
In the US, Q3 reported revenue was 4.1% higher than in the prior year and 1% lower on a constant currency basis in the context of a particularly strong comparator period.
The ingredients and property division, which now represents less than 5% of Group activity, recorded revenues of £10.5m in the third quarter, £4.1m or 28.1% lower on a reported basis and 32.9% lower on a constant currency basis.
Greencore cautioned that EU referendum has resulted in “greater uncertainty with regard to the UK economic outlook and the longer term implications remain unknown”. It said at this stage, the short-term impact on Greencore is likely to be “modest” given it imports less than a quarter of its ingredients and packing materials.
“The depreciation in sterling is not expected to impact profit delivery in the current financial year. However, if current exchange rates persist, net debt at year end will be higher than expected at the half year due to translation of US dollar denominated borrowings.”
Greencore shares were down 3.1% to 311.6p on today’s trading update.