Yorkshire Pudding maker Greencore reports steady progress over the first quarter

Greencore is a major manufacturer of convenience food in the UK.

It supplies grocery and other retailers including all of the major UK supermarkets. Its range categories including sandwiches, salads, sushi, chilled snacking, chilled ready meals, chilled soups and sauces, chilled quiche, ambient sauces and pickles, and frozen Yorkshire Puddings.

Group revenue increased by 1.8 per cent to £367.8m in Q1 (the first quarter) in what continued to be a challenging trading environment, the company said.

On a pro forma basis, adjusting for acquisitions and site exits, revenue increased by 0.7 per cent in the quarter.

Q1 revenue in the group’s activities in "food to go" categories totalled £240.9m while pro forma revenue increased by 0.5 per cent.

Reported revenue in Q1 increased by 4.5 per cent reflecting the impact of the Freshtime acquisition which performed well during the quarter.

Revenue in the group’s other convenience categories totalled £126.9m over the quarter, increasing by 0.9 per cent on a pro forma basis.

Commenting on outlook, the group said it had started the year in line with plan and continued to anticipate a year of profitable growth in 2020.

The statement added: "A strong balance sheet and improved free cash flow conversion leaves the group well placed to deliver on the medium term financial ambitions outlined at the capital markets day in September 2019.

"The group will continue to consider further organic and inorganic investment in line with its capital allocation policy and strategic objectives."

The group will report its interim results on May 19 2020.

Commenting on the performance, Patrick Coveney, the chief executive, said: “We continue to make good strides in the diverse, attractive and growing UK food to go market. Our strategy to drive growth, to deepen customer relevance and to pursue a distinctive and repeatable way of working is well embedded across the business.

"Following a steady start to 2020, we look forward to delivering a year of profitable growth.”

On an annual basis, Greencore manufactures around 717 million sandwiches and other food to go products, 123 million chilled prepared meals, and 231 million bottles of cooking sauces, pickles and condiments. The group carries out around 7,500 deliveries to stores each day.

Greencore has 21 production units in 16 manufacturing sites in the UK, including a base in Leeds.

The group also operates two ingredients trading businesses in Ireland and employs around 11,500 people.