TIDMGNC
RNS Number : 6464N
Greencore Group PLC
01 October 2021
1 October 2021
Greencore Group plc
FY21 Q4 and Full Year Trading Update
Greencore Group plc ("Greencore" or the "Group"), a leading
manufacturer of convenience foods in the UK, today issues a trading
update for Q4 and the full year ended 24 September 2021, ahead of
the publication of its full year results on 30 November 2021.
HIGHLIGHTS (1,2,3)
-- There has been further improvement in revenue, profitability,
and cash flow momentum during Q4, supported by a continued increase
in demand for food to go categories and strong execution on new
business wins
-- Revenue trends continued to recover through Q4, with Group
pro forma revenue 27% above Q4 20 levels and 1% above equivalent
pre-COVID levels in Q4 19. For the full year, the Group anticipates
a reported revenue outturn of approximately GBP1,320m
-- The Group expects to generate an FY21 Adjusted Operating
Profit outturn towards the upper end of previous guidance of
between GBP36m and GBP40m
-- The Group also expects Net Debt (excluding lease liabilities)
at year end to be below GBP190m, an improvement on previous
guidance of below GBP240m. Strong free cash generation continued in
the final quarter. Working capital inflows were supported by
increased volumes and from the timing benefit of an early year end
date. There was an adjustment to the phasing of some capital
expenditure projects into early FY22, and the disposal of an
investment property for approximately GBP7m was also completed. Net
Debt:EBITDA, as measured under financing agreements, is expected to
be below 2.2x
-- Good progress was made on the Group's sustainability
objectives, in particular the launch of fully recyclable, plastic
free sandwich skillet trials for customers in September 2021
OUTLOOK
-- The Group is encouraged by the progress seen in the final quarter of FY21
-- 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 Group is also engaging intensively with customers to
recover input cost and other inflation
FY21 Pro Forma Revenue Growth(1,2)
Versus FY20 Versus FY19
---------------------- -----------------
Q4 FY Q4 FY
------------ -------- -------- -------
Group +27% +6% +1% -9%
------------ -------- -------- -------
Food to go categories +37% +9% -2% -16%
------------ -------- -------- -------
Other convenience food
categories +8% +2% +10% +4%
------------ -------- -------- -------
Commenting on the performance, Patrick Coveney, Chief Executive
Officer, said:
"We are pleased with the further improvement in our business in
the fourth quarter, in particular the increase in demand across the
business and our strong underlying cash generation. I am also
excited by the progress we have made in the past quarter on our
sustainability journey including the launch of the first fully
recyclable, plastic free sandwich skillet.
None of our progress would have been possible without the energy
and dedication of our teams and colleagues who, as throughout the
COVID pandemic, continue to do a fantastic job. Greencore has a
strong position in the dynamic UK convenience food market and,
looking forward, we remain confident in our medium-term
prospects."
(1) Unaudited
(2) Pro forma references throughout this Trading Update are on a
constant currency basis. Reported revenue is the IFRS measure of
revenue generated during the period. Pro forma revenue adjusts
reported revenue to reflect the disposal of Premier Molasses
Company Limited (Premier Molasses) in Q1 2021. The adjustment
excludes from reported revenue, the revenue generated by Premier
Molasses for FY20 and the revenue generated in FY21 up to the date
of its disposal
(3) Adjusted Operating Profit is calculated as operating profit
before amortisation of acquisition related intangibles and
exceptional items
For further information, please contact:
Patrick Coveney Chief Executive Officer Tel: +353 (0)
1 486 3313
Emma Hynes Chief Financial Officer Tel: +353 (0)
1 486 3307
Jack Gorman Head of Investor Relations Tel: +353 (0)
1 486 3308
Rob Greening/ Nick Hayns/ Powerscourt Tel: +44 (0) 20
Sam Austrums 7250 1446
Billy Murphy or Louise Drury Communications Tel: +353 (0)
Walsh 1 260 5000
About Greencore
We are a leading manufacturer of convenience food in the UK and
our purpose is to make every day taste better. We supply
foodservice, grocery and other retailers, including all of the
major UK supermarkets. We have strong market positions in a range
of categories including sandwiches, salads, sushi, chilled ready
meals, chilled soups and sauces, chilled quiche, ambient sauces and
pickles, and frozen Yorkshire Puddings.
In FY20 we manufactured 619m sandwiches and other food to go
products, 116m chilled prepared meals, and 264m bottles of cooking
sauces, pickles and condiments. We carry out more than 10,000
direct to store deliveries each day. We have 16 world-class
manufacturing sites in the UK, with industry-leading technology and
supply chain capabilities. We generated revenues of GBP1.3bn in
FY20 and employ approximately 12,200 people. We are headquartered
in Dublin, Ireland.
For further information go to www.greencore.com or follow
Greencore on social media.
The financial information relating to Greencore in this Trading
Update is based on information sourced from unaudited management
accounts. The financial information has been published for the
purposes of updating investors on financial performance for the
periods referenced. The statutory financial statements for the year
ended 24 September 2021 have not been prepared by management or
reported on by the statutory auditor. The annual results of
Greencore for FY21 will be published on 30 November 2021.
Certain statements made in this Trading Update are
forward--looking. These represent expectations for the Group's
business, and involve known and unknown risks and uncertainties,
many of which are beyond the Group's control. The Group has based
these forward--looking statements on current expectations and
projections about future events. These forward-looking statements
may generally, but not always, be identified by the use of words
such as 'will', 'aims', 'anticipates', 'continue', 'could',
'should', 'expects', 'is expected to', 'may', 'estimates',
'believes', 'intends', 'projects', 'targets', or the negative
thereof, or similar expressions.
By their nature, forward-looking statements involve risk and
uncertainty because they relate to events and depend on
circumstances that may or may not occur in the future and reflect
the Group's current expectations and assumptions as to such future
events and circumstances that may not prove accurate. A number of
material factors could cause actual results and developments to
differ materially from those expressed or implied by
forward-looking statements. You should not place undue reliance on
any forward-looking statements. These forward-looking statements
are made as of the date of this Trading Update. The Group expressly
disclaims any obligation to publicly update or review these
forward-looking statements other than as required by law.
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END
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