(Alliance News) - Greencore Group PLC on Tuesday said it has increased its adjusted operating profit guidance following strong trading in its financial third quarter and announced trials of fully recyclable sandwich packaging.
Shares in Greencore were up 3.4% to 133.30 pence each in London on Tuesday morning.
The Dublin-based convenience foods manufacturer reported revenue for the 13 weeks ending June 25 of GBP360.2 million, a rise of 50% year-on-year from GBP240.6 million. It also represents a 2.8% fall from pre-pandemic levels of GBP370.6 million.
Revenue in the food-to-go categories was GBP236.5 million in the third quarter, almost doubling from GBP123.8 million a year ago.
Revenue in the group's other convenience food categories totalled GBP123.7 million, an increase of 5.9% from GBP116.8 million.
The UK trading environment improved markedly in third quarter as the economy reopened and mobility restrictions were eased, supporting demand growth in food-to-go categories in particular.
In addition to the underlying market recovery, Greencore said it benefited from its strong market position in the grocery retail channel, its customer and format mix, and its portfolio across food to go and other convenience categories. Greencore worked closely with customers to reactivate product ranges and formats during the period, it said.
"Notwithstanding the supply chain and labour challenges impacting the broader UK food industry at present, the company is confident in its ability to deliver strong year on year profit and cash flow progression in the second half of the year," the company said.
Greencore now expects to generate adjusted operating profit to be between GBP36 million and GBP40 million for financial year 2021, versus previous guidance of above last year's levels of GBP32.5 million.
Greencore will report its financial year results on November 30.
Also on Tuesday, Greencore said that, in partnership with the Co-op and J Sainsbury PLC, it will soon commence 'test and learn' trials of an all-fibre plastic-free recyclable sandwich skillet in stores across the UK.
The packaging will have a plastic-free window and be made entirely from paper-based material.
Subject to successful trials, which commence in September 2021, and the proposition meeting all parties' performance criteria, roll-out of the new packaging will begin later in the year.
By Amrit Sahota; newsroom@alliancenews.com
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