Convenience food group Greencore has reported revenues of £356m (€466m) for the first quarter of its 2016 financial year, a 7.2% increase compared to the same period last year. In constant currency terms, revenues increased by 6.8%.

Greencore’s convenience foods division, which accounts for more than 96% of group turnover, reported sales of £345.1m for the quarter. This equates to an almost 8% increase in year-on-year sales on a reported basis and an increase of 7% in constant currency.

Within the convenience foods segment, revenue from the UK increased by 8% despite a challenging retail trading environment. Greencore added that the construction of its new production facility at Northampton is nearing completion, with commissioning on track to commence in the spring.

Expanding production

In the US, Greencore’s other key market, sales for the three-month period to the end of December were 6.5% higher in reported terms and 1.3% higher in constant currency terms. Greencore said that revenue from its US operations was in line with expectations following the closure of its Brockton facility. Offsetting this closure, Greencore says it is continuing to expand production at its Rhode Island facility while construction continues on its new production plant on the US west coast in Seattle.

Greencore’s other division is ingredients and property, which accounts for less than 5% of group turnover. This division recorded first-quarter revenues of £10.9m (€14.3m), a 6% decline year-on-year or in constant currency terms an increase of more than 3%.

Greencore’s outlook for the year is positive after making what it calls a strong start to its financial year. Continued investment in capacity will continue throughout the year and the group is confident it will deliver a performance in line with market expectations.