(Alliance News) - Convenience foods producer Greencore Group PLC on Tuesday said site disposals, business exits and weak market conditions dented revenue growth in the third quarter of financial 2019.
Shares in the company were trading 3.0% lower at 218.60 pence each, among the worst performers in the FTSE 250 in London on Tuesday.
For the 13 weeks to June 28, reported revenue from continuing operations totaled GBP365 million, down 2.9% year-on-year. On a pro forma basis, revenue increased by 0.8% in the quarter.
Year to date, reported revenue from continuing operations totaled GBP1.07 billion, down 4.0% on the prior year period. On a pro forma basis, revenue increased by 3.8%.
By division, the company's food-to-go categories saw 0.6% rise in reported revenue to GBP250.6 million in the third quarter, driven by product revenue growth.
Greencore said the growth reflected weak market conditions with unseasonal weather, a varied trading performance across the customer portfolio against a strong comparative period.
Reported revenue in other convenience food categories totalled GBP114.3 million in the quarter, a 9.8% reduction on a reported basis due to site disposals and business exits.
Greencore said it is performing well against its strategic and financial objectives and continues to anticipate growth in annual adjusted operating profit supported by underlying revenue growth and a good operational performance.
The company is scheduled to report its results for the year ending in September on November 26.
Greencore (GNC)