Consumer demand is holding but Greencore remains cautious

In its a trading update for Q4 and the full year ended 30 September 2022, the food manufacturer revealed that it has a “progressive year on year improvement​” in revenue and operating profit. 

Over the year the company saw a rebound in revenue as on-the-go consumption returned. Pro forma revenue growth in Q4 2022 of 25% year on year was driven by a combination of increased volumes, a low-teen percentage increase in underlying pricing, the onboarding of new business in ready meals and increased revenue in the group’s Irish ingredients trading business. 

Revenue growth

However, Q4 2022 revenue growth of 23% in food-to-go categories was lower than Q3 2022 due to a stronger comparative period, the volume impact of rail strikes and the unexpected bank holiday, and the full year effect of new business wins in Q4 last year. 

The company said that it closely monitors the impact of the UK macroeconomic environment on consumer sentiment and demand in its categories. 

In the statement it said: “We don’t currently see an impact as consumer demand has held up well, however we remain watchful and cautious about the potential impact of cost-of-living factors through the year ahead."​

Inflation

It said it remains focused on the recovery of inflation through all mechanisms available and are working with customers and supply partners to mitigate the ongoing impact of the persistently high inflation across the industry on consumer prices. 

It added: “We have substantially recovered the inflation that we have experienced over the last 12 months, and we are making decisions whether to bid for or renew contracts based on their economics, including the ability to recover inflation.”

Its full year reported revenue is approximately £1.7bln (FY21: £1.3bln)