News: Revenues and profits up at Greencore
Leading convenience food manufacturer, Greencore, has reported strong half year results, despite what it calls a "difficult" UK market which saw one quiche customer move manufacturing in house.
The Irish group has 28 sites in the UK and employs around 3,000 people in Yorkshire. Greencore Prepared Meals at Wales Bar in Rotherham is one of five sites in the Prepared Meals division and prepares quiches, ready meals and soups.
For the 26 weeks ended March 27 2015, Greencore reported revenue of £639.8m, up 3.2% on the same period last year. Operating profit of £40.1m increased by 7.8% and was driven by the increase in revenue, continued operational improvements and focus on cost control.
Greencore said its revenue growth continues to be driven by the food-to-go business, which demonstrated like-for-like growth of 8.7%.
Greencore's Prepared Meals business produces chilled ready meals, chilled sauces, chilled soup and quiche for the major retailers in the UK. The business, like most of the categories in which it operates, is largely "own brand" label, although products are produced under license for the Weight Watchers brand. It represents approximately 20% of group revenue.
The financial results stated that the chilled ready meals market grew by 2.5% in the period whilst the principal sub-category, Italian chilled ready meals, experienced robust growth of 8.9%. The quiche market grew at 0.4% in the period whilst the chilled soup market grew by 3.2%.
It added: "The Prepared Meals business grew by 2.4% in the period. Our ready meals activity performed well in the period, ahead of the overall ready meals market due to customer specific activity in Italian meals. Soup also outperformed its market following new product launches. However, quiche sales were lower year on year as one customer moved the manufacture of some lines in house during 2014."
The Rotherham facility bakes over a hundred thousand quiche a day and uses over 35 million eggs a year.
Over the past number of years, Greencore has invested in the former Hazlewood Foods facility, increasing ready meals, quiche and soup capacity. These investments were largely driven by secured business wins, supplemented by incremental investments in capacity to support future growth with existing and new customers.
The investments are aligned with the strategy to have market leading positions in convenience food categories that are complementary to the food to go category.
The current focus of investment is to support growth in food to go in both the UK and US markets.
Greencore website
Images: Greencore
The Irish group has 28 sites in the UK and employs around 3,000 people in Yorkshire. Greencore Prepared Meals at Wales Bar in Rotherham is one of five sites in the Prepared Meals division and prepares quiches, ready meals and soups.
For the 26 weeks ended March 27 2015, Greencore reported revenue of £639.8m, up 3.2% on the same period last year. Operating profit of £40.1m increased by 7.8% and was driven by the increase in revenue, continued operational improvements and focus on cost control.
Greencore said its revenue growth continues to be driven by the food-to-go business, which demonstrated like-for-like growth of 8.7%.
Greencore's Prepared Meals business produces chilled ready meals, chilled sauces, chilled soup and quiche for the major retailers in the UK. The business, like most of the categories in which it operates, is largely "own brand" label, although products are produced under license for the Weight Watchers brand. It represents approximately 20% of group revenue.
The financial results stated that the chilled ready meals market grew by 2.5% in the period whilst the principal sub-category, Italian chilled ready meals, experienced robust growth of 8.9%. The quiche market grew at 0.4% in the period whilst the chilled soup market grew by 3.2%.
It added: "The Prepared Meals business grew by 2.4% in the period. Our ready meals activity performed well in the period, ahead of the overall ready meals market due to customer specific activity in Italian meals. Soup also outperformed its market following new product launches. However, quiche sales were lower year on year as one customer moved the manufacture of some lines in house during 2014."
The Rotherham facility bakes over a hundred thousand quiche a day and uses over 35 million eggs a year.Over the past number of years, Greencore has invested in the former Hazlewood Foods facility, increasing ready meals, quiche and soup capacity. These investments were largely driven by secured business wins, supplemented by incremental investments in capacity to support future growth with existing and new customers.
The investments are aligned with the strategy to have market leading positions in convenience food categories that are complementary to the food to go category.
The current focus of investment is to support growth in food to go in both the UK and US markets.
Greencore website
Images: Greencore
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