Greencore set to meet expectations

Food group Greencore expects no “material improvement” in its trading environment in the near future, but remains confident of meeting market expectations as it reports sales growth of 6.7 per cent for the third quarter.

This morning, the group said it continues to perform well "despite the challenging and volatile market conditions" and it remains confident in its ability to deliver growth in adjusted earnings per share in line with market expectations as it reports sales growth of 6.7 per cent for the third quarter.

In the 13 weeks to June 29th, it reported revenue growth of 46.9 per cent and core growth of 11.1 per cent, assuming Uniq, which it acquired last year, had formed part of the group in 2011 and excluding its dessert product lines, which it is exiting. Exlcuding MarketFare, growth was 6.7 per cent.

Convenience foods grew by 51.2 per cent on the prior year, contributing revenues of £277.9 million, while ingredients saw a 5.1 per cent increase, up to £20.1 million. According to the group, performance was helped by the Jubilee bank holiday in May, but demand in June was impacted by inclement weather conditions.

In the first 39 weeks of 2012, the group reported revenues of £865.6 million, 48.8 per cent ahead of the comparable period in the prior year with core growth of 10.3 per cent or 8.7 per cent excluding the contribution from MarketFare.

MarketFare was acquired in April of this year, and along with the acquisition of H.C. Schau and Son, Inc in late June, an "amount of work" is under way to integrate the US businesses.

The integration of Uniq continues to "progress in line with expectations" and its business contributed revenue growth of 7.3 per cent.

With regards to the group's financial position, it indicated that it "remains robust with good headroom within existing facilities".