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Greencore's shares down 5% following tough quarter

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Shares in Greencore were down almost 5% in trading yesterday after the company reported a fall in turnover amid a "challenging quarter" for the UK grocery sector.  (stock photo)

Shares in Greencore were down almost 5% in trading yesterday after the company reported a fall in turnover amid a "challenging quarter" for the UK grocery sector. (stock photo)

Shares in Greencore were down almost 5% in trading yesterday after the company reported a fall in turnover amid a "challenging quarter" for the UK grocery sector. (stock photo)

Shares in Greencore were down almost 5% in trading yesterday after the company reported a fall in turnover amid a "challenging quarter" for the UK grocery sector.

Analysts at Davy Stockbrokers described the convenience food group's three-month update as "light on our expectations."

Equity analyst Cathal Kenny said: "Given 'weak market conditions' in the food-to-go market, we do not envisage a material recovery in market growth rates over the coming quarters."

Reported revenue from continuing operations fell 2.9% year-on-year to £365m in the three months to June 28, which the group said was mainly due to the impact of site disposals and UK business exits. On a pro forma basis, revenue increased by 0.8% in the quarter.

In Greencore's food-to-go categories, reported revenue was £250.6m, an increase of less than 1% on the previous year. This was a "significant deceleration" compared to the first half of the year, analysts said.

Meanwhile, Greencore chief executive Patrick Coveney, brother of the Republic's Tanaiste Simon Coveney, said the company was planning for a no-deal Brexit outcome.

"What we are doing is planning our supply chain, planning our range and engaging with our customers on different demand scenarios for that no-deal outcome," he added.

"Hopefully, it won't come to pass. But I think we look very silly if we lived on just hope based on the sentiment and public statements of all stakeholders in this process right now."

Belfast Telegraph