Greencore lifts profit expectations following strong Q4 performance
Convenience food manufacturer Greencore Group has lifted expectations for its full year financials amid surging demand for food to go.
On the back of strong Q4 results for 2021, which saw revenues climb 27 per cent year on year, the company said it anticipates operating profit for FY21 to be towards the upper end of previous guidance between £36m and £40m with full year revenue expected to reach £1.32bn.
Greencore’s expectations for Net Debt also improved to stand below £190m, an improvement on previous guidance of below £240m.
Commenting on the performance, Patrick Coveney, Chief Executive Officer, said, “we are pleased with the further improvement in our business in the fourth quarter, in particular the increase in demand across the business and our strong underlying cash generation.
“Greencore has a strong position in the dynamic UK convenience food market and, looking forward, we remain confident in our medium-term prospects,” Coveney added.
While the company’s Q4 results showed a strong improvement on 2020 sales, it still lagged behind pre-pandemic levels.
In the food to go category, sales jumped by 37 per cent compared to Q4 2020, but remained two per cent under 2019 levels. The company expects sales to remain 16 per cent below 2019 levels for the full year.
While the challenges of the pandemic are behind Greencore, the food manufacturer faces supply chain and labour challenges persist across the UK food industry with threaten to disrupt the 10,000 daily food deliveries made to supermarkets.
Greencore share price is down 2.69 per cent compared to yesterday’s close.
Read more: Soggy sandwich: Food firm Greencore sinks to first-half loss