(Alliance News) - Greencore Group PLC on Tuesday reported pro forma revenue growth for its recently completed financial year, benefiting from price increases and new business wins.
The Dublin-based convenience foods maker noted that its 2022 financial year ended on September 30, whereas financial 2021 ended on September 24. Its pro forma figures exclude the impact of the 53rd week in 2022 and are reported on a constant currency basis.
Revenue on that basis was up 29% in financial 2022 from financial 2021. In comparison, pro forma revenue in financial 2021 was up 6.2% from financial 2020, but down 9% compared to pre-pandemic financial 2019. In the fourth quarter alone, group revenue was up 25% from a year before.
Food-to-go revenue was up 35%, versus 9% growth in financial 2021.
In the fourth quarter, food-to-go revenue grew by 23% year-on-year versus 38% growth a year before and 31% in the third quarter. "Fourth quarter 2022 revenue growth of 23% in food-to-go categories is lower than third quarter 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 fourth quarter 2021," Greencore explained.
Revenue in other convenience food categories were up 19% in financial year 2022, compared to 2% growth in the previous year.
"Pro forma [group] revenue growth in the fourth quarter of 2022 of 25% year-on-year is 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," the firm added.
Looking ahead, Greencore said it does not see an impact from the macroeconomic situation in the UK, noting continued demand; "however we remain watchful and cautious about the potential impact of cost-of-living factors through the year ahead."
The company added: "We remain focused on the recovery of inflation through all mechanisms available and are working with our customers and supply partners to mitigate the ongoing impact of the persistently high inflation across the industry on consumer prices."
Greencore will release its results for the financial year that ended September 30 on November 29.
Greencore shares were down 1.9% to 68.00 pence each in London on Tuesday morning.
By Tom Budszus; tombudszus@alliancenews.com
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