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Greencore Group PLC on Tuesday said it's ‘encouraged’ by its recent revenue momentum as the world emerges from virus lockdowns, and it has been able to pass on the cost increases that have followed.
For the six-month period that ended on March 25, the convenience food maker's revenue was £770.8 million, up 34% from £557.1 million in the same period a year before and above its pre-pandemic level. In the half year to March 2019, Greencore booked £701.4 million in revenue.
Greencore swung to a pretax profit of £1.0 million from a loss of £1.8 million the year before.
Executive Chair Gary Kennedy said: ‘We are very pleased to have delivered H1 revenues that are back above pre-Covid levels, which is a great achievement against a backdrop of mobility restrictions, supply challenges and emerging inflation.’
‘The group is encouraged by the momentum in revenue and profit conversion in the first seven weeks of H2, in what continues to be a challenging environment and as the group enters its period of peak seasonal trading,’ Greencore said.
It said it has recovered the significant input cost and other inflation incurred during the first quarter and early second quarter through explicit price recovery mechanisms, constructive dialogue with customers, and operational efficiencies.
The company is currently investing approximately £30 million across three existing Greencore manufacturing sites to support the delivery of previously announced new business over the course of the new financial year. This investment programme is on track and is expected to complete in the fourth quarter of 2022.
Looking ahead, Greencore expects to deliver a full-year outcome in line with market expectations.
Greencore declared no interim dividend, unchanged from last year, but is said: ‘The group intends to recommence value return to shareholders of up to £50 million over the next two years, initially in the form of a share buyback programme.’
Greencore shares were up 5.1% at 112.80 pence each on Tuesday morning in London.
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