Last month Greencore acquired the US food-to-go business MarketFare Foods, while continuing to integrate Uniq – purchased last December – into the group.
“The group recorded strong sales growth to £568M, ahead of expectations (Shore forecast £551M),” they said.
Overall growth of 9.3% on a continuing basis included 9.7% growth in the Convenience Foods division. Shirley and Black estimated that 80% of the growth was volume-driven describing it as “high-quality”.
Commendable
Earnings before interest and tax (EBIT) was 50% lower year-on-year but this was expected following the incorporation of Uniq, they said. “On a proforma basis we estimate underlying EBIT was ahead 60–70%. We deem this profit out-turn to be commendable in challenging markets.”
Nicola Mallard, analyst with Investec Securities, said the results revealed“… a good start to the year for both Uniq and the base business”.
Mallard added: “We have allowed for some slowdown in 2H v 1H [first half versus second half] performance as the group passes the anniversary of new buisiness wins.
“But this still allows us to up PBT [profit before tax] estimates by 5% and EPS [earnings per share] by 10%, benefiting from lower tax assumptions.”
