Convenience food manufacturer Greencore has reported a "progressive" improvement in revenue and operating profit, supported by continued volume growth and significant recovery of inflation.
In a trading update for the year to the end of September, Greencore said its full year revenue rose to about £1.7 billion from £1.3 billion the previous year.
It said its full year adjusted operating profit and adjusted earnings per share were at the lower end of the respective ranges of £72-£77m and 9.2p-10 pence due to the impact on volume and operations of rail strikes and the unscheduled bank holiday in September.
Greencore, which is the biggest pre-packed sandwich maker in the UK, said it was closely monitoring the impact of the UK macroeconomic environment on consumer sentiment and demand in its categories.
"We don't currently see an impact as consumer demand has held up well, however we remain watchful and cautious about the potential impact of cost-of-living factors through the year ahead," it stated.
It also said it remains focused on the recovery of inflation through all mechanisms available.
The company said it was working with its customers and supply partners to mitigate the ongoing impact of the persistently high inflation across the industry on consumer prices.
"We have substantially recovered the inflation that we have experienced over the last 12 months, and we are making decisions whether to bid for or renew contracts based on their economics, including the ability to recover inflation," it added.
Today's trading update is the first from the company's new chief executive Dalton Philips.
Mr Philips, the former chief executive of airports operator daa, joined Greencore in September and replaced Patrick Coveney who left the company at the end of March to take up the CEO job at SSP Group, an operator of food and beverage outlets in travel locations including Upper Crust.
In today's trading update, Greencore said its pro-forma revenue growth during the fourth quarter of 2022 reached 25%.
It said this was due to a combination of increased volumes, a low-teen percentage increase in underlying pricing, new business in ready meals and increased revenue in its Irish ingredients trading business.
