Greencore Group fails to impress despite profit rise
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Convenience food producer Greencore Group (LON:GNC) has reported that revenues for the year ended 28th September rose by 4.2% to £1.49 billion as it focused its offerings on major lunch items and closed its UK desserts production. Profits before taxation climbed by 12.7% to £49.8 million.
Management said that while there were some near-term concerns about a no-deal Brexit, the risks would be manageable in the medium term. They added that the company was entering the 2019 financial year as a stronger and leaner entity.
CEO Patrick Coveney said: “2018 was a year of significant change for Greencore. We delivered good underlying growth in the UK, with favourable consumer and retailer trends helping drive our core food to go business. After the financial year-end, we took the decision to sell our US business having received a compelling offer for it. We will now focus all of our attention and resources on the significant growth opportunities that we see in the UK, both organic and inorganic. Despite the short-term uncertainties of Brexit, our scale, depth and expertise in attractive and structurally growing food categories mean that we are confident in the future growth prospects for Greencore.”
Shares in Greencore Group dropped by 1.85% to 180.40p (as of 11:45 GMT).
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