Greencore Group revenues down in Q3 on weaker backdrop for grocery sector

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Convenience foods manufacturer Greencore Group reported a fall in revenue in the third quarter amid a 'challenging quarter' for the UK grocery sector.

Reported revenue from continuing operations was £365.0m in Q3, a decrease of 2.9% on the prior year primarily reflecting the impact of site disposals and business exits (Hull, Evercreech, and Kiveton ready meals).

On a pro forma basis, revenue increased by 0.8% in the quarter.

Year to date, the Group's reported revenue from continuing operations was £1,066.4m, a decrease of 4.0% on the prior year on a reported basis.

In the Group's food to go categories, reported revenue was £250.6m in Q3, an increase of 0.6%, weighed down by weak market conditions with unseasonal weather, a varied trading performance across the customer portfolio, set against a strong comparative period, the company said.

Looking ahead, the company said In anticipated that its net debt over earnings (EBITDA) ratio for the year, as measured under financing agreements, would be at the lower end of its medium term target range of between 1.5 times to 2.0 times.

'The final quarter represents a seasonally important period for Greencore and the Group continues to anticipate growth in Adjusted Operating Profit for the full year supported by underlying revenue growth and a good operational performance,' it added.

Greencore will report its FY19 results on 26 November 2019.

At 9:02am: (LON:GNC) Greencore Group PLC share price was -8p at 217.1p


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