The convenience food group Greencore has reported revenues of £986.3m (€1.4bn) for the nine months to the end June 2015, a 4.2% increase on the same period last year. In a trading statement released today (Tuesday), Greencore said it expects to deliver adjusted earnings growth for its full financial year despite pressure on margins from the challenging UK grocery retail market at present.

The company added that the combination of modest deflation in ingredients and packaging costs, together with price investment by grocery retailers, had resulted in value growth lagging behind volume in a number of its product markets.

For the three months to the end of June, revenue increased by 6.2% to £346.5m (€488.5m) compared with the same period last year.

Convenience Foods

Greencore’s convenience foods division accounts for the majority of the group’s turnover with sales 6.9% ahead of the prior year at £331.9m (€468m). In its core UK market, sales were up by 4% as its food-to-go business, manufacturing sandwiches, sushi and salads, experienced good growth as a result of new product lines coming from the recent expansion of its Northampton facility.

The US continues to be Greencore’s fastest growing market with like-for-like food-to-go sales 22% ahead of the prior year. The US market now represents close to 20% of the group's revenue.

Greencore has undertaken significant capital investment in its US business in the past 18 months. In April, production commenced from its new sandwich making facility in Rhode Island allowing it to close two other older sites.

Greencore’s ingredients and property division, which now represents less than 5% of group turnover, reported a 4.4% increase in revenue to £14.6m (€20.6m). In real terms, the division’s sales declined by 8.2%.

Greencore’s share price has strengthened by more than 15% in the past 12 months to 316p, giving the group a market capitalisation of more than £1.32bn (€1.87bn).