Greencore confident of mitigating Brexit threats

The convenience food manufacturer expected rising costs in 2017 due to currency fluctuations, it said in its first-quarter trading update on January 31. But, supply chain and pricing plans would help to mitigate those costs, the company predicted.

A Greencore statement said: “Inflation in raw material and packaging prices and labour costs are expected to increase for the remainder of the year, although we anticipate that the combination of supply chain, purchasing and pricing initiatives will mitigate these impacts.”

£402M

Greencore’s rising sales were driven by its Convenience Foods division, which reported an 8.9% rise in like-for-like sales to £402M. The firm’s Food-to-Go business benefited from category growth, it said.

US Convenience Foods like-for-like sales were up 8%, driven by new operations in Seattle, Greencore reported. “The business continues to progress year on year,” it claimed.

The Ingredients and Property division – which now represents less than 5% of total revenue – was up 16.5% in like-for-like sales, compared with the same period last year. The growth was driven by global dairy market demand, Greencore said.

Greencore’s acquisition of Peacock Foods was completed on December 30, it confirmed. It’s integration plan was said to be on-track, and in line with expectations.

‘Positive category growth’

“[Greencore] continues to deliver strong revenue growth in both the UK and US, reflecting positive category growth and the roll-out of new business wins,” Greencore said.

“The integration of Peacock Foods in the US and the related synergy delivery is on track, albeit the process is at an early stage.”

Meanwhile, Greencore ceo Patrick Coveney claimed last week that Irish businesses were better prepared for Brexit than their UK counterparts. Irish firms were thinking more “deeply” and “rationally” than UK businesses, he claimed.