Greencore posts sales loss in Q3 trading update

Greencore’s group revenue fell 6.1% in Q3 to £465.2m, but was up 1.4% on a like-for-like basis compared to same period last year. Food-to-go sales were a key driver for the business, worth £330.2m during the reported period.

However, this was still a dip of 1.5% compared to the previous quarter, and down 0.7% on a nine-month basis. Other convenience categories fared much worse, with a reported 15.7% fall in revenue compared to Q3 2023 and down 1.1% in life-for-like sales.

Greencore exit

The manufacturer said revenues reflected the year-on-year impact of its exit from a number of low margin contracts in FY23 and the disposal of the Trilby Trading business.

The reported period also covered the completed rationalisation of the manufacturer’s soup sites with the closure of its production facility in Kiverton, as well as its continued focus on operational initiatives aimed at deploying ‘best practice learnings’ throughout the business.

Chief executive Dalton Philips said: “Q3 represents another excellent performance by the business against a tough comparative period. Our continued progress has been delivered through ongoing impactful operational and commercial initiatives, which we are continuing to implement at pace, supporting the improved profit conversion in the quarter. ​

Full-year prediction

“While Q4 remains a seasonally important trading period, our continued strong profit conversion performance means we now expect to deliver a full year Adjusted Operating Profit of £88-90m, ahead of previous guidance and market expectations.”​

Greencore’s Q3 2024 was also marked by the launch of 174 new products, including a number of premium food-to-go ranges – a revamped premium range of sushi and the third phase of the group’s ongoing programme of a premium product offering for a material customer.

Greencore expects to report its FY24 results for the year ending 27 September 2024 on 3 December 2024.

Meanwhile, last month saw Oasis Management Company increase its stake in Greencore to more than 10%,​​ making it the manufacturer’s largest single stakeholder.