Greencore’s revenue gains driven by food-to-go

Like-for-like (LFL) group revenue rose by 7.4%, while operating profit was 11.4% up to £82.9M.

LFL convenience foods revenue of £1,213.4M, was up by 8.4%.

Ceo Coveney said the business had made strong strategic, operational and financial progress during the past year. “The group’s focus on extending our leadership in the food-to-go market is yielding great results, with like for like revenue growth in that area of the business exceeding 15%,”​ said Coveney. 

‘Strong market positions’​

“We have strong market positions, a clear strategy, and are continuing to lay the foundations for future growth through a significant capacity and capability investment programme in both the UK and the US. We enter the new financial year with good momentum and remain well positioned to deliver further progress in FY15 ​[financial year] and beyond.”​

Greencore highlighted three strategic developments during the year. First, was its continued US growth with the acquisition in February this year of food-to-go operator Lettieri’s and the construction of a new site in Rhode Island.

The business also announced today (November 25) the development of its first US west coast facility.

Lettieri’s product range included: breakfast sandwiches and stuffed baguettes, which are manufactured frozen and served via roller grills and heated cabinets. When announcing the acquisition, Greencore revealed plans to invest £6M in the firm’s Jacksonville factory in Florida. Speaking in February Coveneny said: “Both the Lettieri’s acquisition and the capital investment into Jacksonville deepen our manufacturing capability and widen our product range to more fully serve the food-to-go needs of our customers in the small-store channels.”​

Winning new business​

The second highlight was the multi-year investment plan in its Northampton food-to-go facility, following the winning of new business and to meet market growth.

Third, was the disposal of foodservice desserts business, Ministry of Cake​.

In the UK, Greencore’s business included: food-to-go, chilled prepared meals, chilled soups and sauces, ambient sauces and pickles, cakes and desserts and Yorkshire puddings. It sold its desserts business to Müller Dairy UK in January 2013.

In the US, it serves both the convenience and small store channel and the grocery channel.

For more on Greencore's business plans on both sides of the Atlantic, read our exclusive interview​ with the firm's chief financial officer Alan Williams.

Meanwhile, Coveney won the prestigious title Personality of the year​ at the Food Manufacturing Excellence Awards (FMEAs) in a gala award ceremony at the London Park Lane Hilton last Thursday evening (November 20).

Greencore results – at a glance​

• Group revenue up by 6.4% to £1,273.5M

• Like-for-like convenience foods revenue up by 8.4% to £1,213.4M

• Group operating up by 11.4% to £82.9M

• Growth in adjusted earnings per share of 13.6% to 15.9p

• Reduction in net debt of £20.7M to £212.1M