Greencore sees strong start to year with sales up 53% after Uniq deal

GREENCORE’S ACQUISITION and integration of British food company Uniq is progressing well, company chief executive Patrick Coveney told shareholders at Greencore’s annual general meeting in Dublin yesterday, as the company reported a strong start to the year.

In its first trading update since acquiring the British company last year, Greencore reported a 53 per cent increase in sales to £375.4 million (€447 million) as a result of the acquisition, with core underlying revenue growth up 11 per cent in the first four months of the financial year.

Greencore’s own convenience food businesses recorded revenue growth of 13 per cent, while revenue from the continuing Uniq businesses was up 8.2 per cent on the same period last year.

While warning of continuing challenges in the general economic environment, Greencore said it expects to deliver full-year results in line with expectations.

“Central to what we do now is the convenience food market,” chief executive Patrick Coveney said. “We like the dynamics of that market. It’s got long-term sustainable growth at a greater level than the overall food market.”

He also pointed out that Greencore had “deeply embedded” relationships with its customers in the UK. Greencore supplies sandwiches, chilled food products and ready meals to Britain’s top supermarkets including Tesco, Sainsbury’s, Asda, Waitrose, and – since the acquisition of Uniq – Marks Spencer.

Its products include sandwiches, sushi and ready-made Italian meals, which are made at sites throughout the UK.

Approximately 90 per cent of Greencore’s revenue is generated in the UK, with about 5 per cent generated in the US. The company employs about 12,000 people, mostly in the UK.

Last month it de-listed from the Irish Stock Exchange. It now has a sole listing quoted in sterling on the London Stock Exchange and expects to be included in the FTSE UK Index Series next month.

Chairman Ned Sullivan told shareholders that the move to the London stock exchange had already resulted in increased liquidity in the stock.

Responding to criticisms about the company’s share price, he said that Greencore had undergone huge transition over the last 10 years and had successfully repositioned itself as a leading convenience food company. “In time I believe that value will be recognised in the share price,” he said.

Almost 90 per cent of Greencore’s shareholders are institutional investors. About 150 shareholders attended yesterday’s agm.

A number of shareholders criticised the remuneration paid to senior executives. Mr Coveney received a total package of £1.43 million (€1.7 million) last year, including a performance-related bonus and pension contribution.