Greencore sees FY earnings at upper end despite supply chain issues

(Sharecast News) - Convenience food maker Greencore said adjusted annual profits were set to be at the upper end of guidance as it worked to mitigate supply-chain and labour issues in the UK caused by Brexit and the Covid pandemic.
The company on Friday said trading had been driven by an increase in demand for takeaway food and new business wins during the fourth quarter.

It guided for full-year revenue of £1.32bn and adjusted operating profit at the top end of its £36m - £40m range. Britain has been struggling with supply chain bottlenecks and truck driver shortages, leading to delayed deliveries.

Greencore said revenue trends continued to recover through the final quarter, rising 27% year on year and 1% above equivalent pre-Covid levels in 2019.

Net debt was forecast to fall to below £190m, lower than previous guidance of below £240m.

"While the well documented supply chain and labour challenges persist across the UK food industry, the group is working closely with customers and suppliers to mitigate the impact and to deliver strong operational service levels," the company said on Friday.

It added that it was "engaging intensively with customers to recover input cost and other inflation".