Convenience food manufacturer Greencore said today that inflationary pressures on raw materials and energy are now easing and will provide a more stable cost outlook for the full year of 2024 compared to the previous year.
In a trading update, Greencore said that group reported revenue decreased by 4.7% to £441.3m in its first fiscal quarter, while on a pro forma basis and adjusting for the disposal of Trilby Trading in Ireland, revenue was broadly flat year on year.
It added that on a like for like basis, revenue increased by 5.8% during the 13 weeks to December 29 compared to the same time the previous year.
Greencore said that reported revenue in the food to go categories increased by 0.9% to £293.7m, while on a like for like basis revenue rose by 5.8%.
It noted that overall sandwich volumes increased 3% on a like for like basis compared to a flat year on year market performance.
The Dublin headquartered company is the biggest pre-packed sandwich maker in the UK.
Meanwhile, reported revenue in other convenience categories slowed to £147.6m, a 14.2% decrease year on year. On a like for like basis this represented a 5.9% increase, which was driven by ongoing inflation recovery initiatives.
Greencore said that after the strong financial and operational start to the year, with improved profit conversion, it now expects to generate a full year 2024 performance in line with current market expectations.
Dalton Philips, Greencore's chief executive, said its manufactured like for like volume growth of 0.5% in the quarter continued to outperform the market in the key categories in which it operates.
"This performance has once again been supported by our outstanding operational service levels to ensure availability of products to our customers. Our focus as a team is to provide fresh and healthy foods to our customers and consumers each and every day," Mr Philips said.
"Our progress as a business has been delivered through continued effective operational and commercial initiatives, as detailed in November, this has supported improved profit conversion and a strong profit outturn in the quarter. We are committed to continuing to drive profitability through commercial discipline and are investing in several initiatives to develop a robust platform for future growth," the CEO said.
"While we remain mindful of the seasonally important second half of the year, we are confident that the group will deliver a full year outturn in line with current market expectations," he concluded.
