Greencore revenue growth driven by Food to Go in the UK, increased US volumes
Source - SMW
Greencore said revenue rose 53.6% to £640.5m in the 13 weeks to 29 December 2017.
This represented an increase of 53.6% on a reported basis, while revenue grew by 7.2% in the quarter.
The upbeat growth was spurred by strong performance in the UK and increased volumes in the US.
The convenience foods UK & Ireland division reported first quarter revenue growth of 9.2% to £385.4m. The strong growth momentum was driven by the Food to Go business, where reported revenue grew by 12.2% and pro forma revenue grew by 11.4%.
Revenue in the other parts of the convenience foods UK & Ireland division grew by 5.7% in the first quarter, and by 5.5% on a pro forma basis.
The convenience foods US division reported first quarter revenue growth of 297% to £255.1m, primarily reflecting the acquisition of Peacock Foods at the end of December 2016, Greencore said.
As a result of the Tax Cuts and Jobs Act in the US, Greencore expects to reflect a one-off, non-cash, credit of approximately $28m to the Income Statement in its FY18 interim results. The group warned, however, that recent GBP/USD foreign exchange movements, if sustained, would have an adverse impact on translated US profits.
At 8:08am: (LON:GNC) Greencore Group PLC share price was +7.85p at 210.05p