Greencore’s Convenience Foods US division grew revenues by 297.0% to £255.1M, primarily reflecting the acquisition of Peacock Foods at the end of December 2016.
On a pro-forma basis, the division’s revenue growth was 5.1%, with volume growth of 7%. Greencore reported “encouraging” commercial activity with its core consumer packaged goods customers.
Greencore supplies a range of dishes for the US market, including spiced salmon meal kits, Kung Pao Wraps and Sausage Egg Muffins.
Overall growth
In the 13 weeks to December 29 2017, the overall business recorded revenue of £640.5M, an increase of 53.6% on a reported basis.
Its Convenience Foods UK & Ireland division reported first-quarter revenue growth of 9.2% to £385.4M, largely driven by 12.2% revenue growth in the food-to-go business.
Greencore reported that it had scaled back investment activity in the convenience division after a phase of “substantial spending” in the 2016 and 2017 financial years.
It added that the key remaining project – the refurbishment and extension of the company’s ready meal facility in Warrington – was “progressing well” and would be completed in the first half of the year.
‘Manufacturing Excellence’
The previously announced UK business restructuring was also reported to be on track. That follows the introduction of a new organisational structure and the launch of the ‘Greencore Manufacturing Excellence’ initiative to drive operational benefits across the division.
In its outlook for the full year, the business said it “anticipates delivering a year of strong growth in FY18 and is well positioned to drive improved profitability, cash flow and returns over the medium term”.
However, it warned continued sterling and dollar foreign exchange movements could damage US profits.
Earlier this week, Greencore reached an agreement to sell its cakes and desserts business in Hull to Bright Blue Foods for an undisclosed sum. This sale, together with the previously announced closure of its desserts facility in Evercreech, marked Greencore’s exit from the UK cakes and desserts sector.