Convenience food group Greencore has reported a further improvement in revenue, profitability and cash flow momentum during its fiscal fourth quarter.
It said the improvements came on the back of a continued increase in demand for food to go categories and strong execution on new business wins.
In a trading update for the fourth quarter and full year ending September 24, Greencore said that revenue trends continued to recover in the fourth quarter, with group pro-forma revenue 27% above levels the same time last year.
They were also 1% above equivalent pre-Covid levels in 2019.
For the full year, Greencore said it is anticipating a reported revenue outturn of about £1.320 billion.
Greencore, which is the biggest sandwich maker in the UK, also said it expects to generate a full year adjusted operating profit towards the upper end of its previous guidance of between £36m and £40m.
It said that while the well documented supply chain and labour challenges persist across the UK food industry, Greencore is working closely with customers and suppliers to mitigate the impact and to deliver strong operational service levels.
It also said it is engaging intensively with customers to recover input cost and other inflation.
"We are pleased with the further improvement in our business in the fourth quarter, in particular the increase in demand across the business and our strong underlying cash generation," Greencore's chief executive Patrick Coveney said.
"I am also excited by the progress we have made in the past quarter on our sustainability journey including the launch of the first fully recyclable, plastic free sandwich skillet," he said.
"Greencore has a strong position in the dynamic UK convenience food market and, looking forward, we remain confident in our medium-term prospects," he added.
Greencore shares were lower in London trade today.
