Convenience food manufacturer Greencore has reported steady sales growth for the first quarter of its 2020 financial year, with its recent acquisition of Freshtime boosting sales.

Despite what it called a “challenging trading environment” in the UK market at present, Greencore reported sales growth of 1.8% for the 13 weeks up to the end of December 2019 as turnover grew to just under £368m (€435m). On a like-for-like basis sales grew by less than 1%.

The growth in first quarter sales was driven by a strong performance in its food-to-go division, where sales grew 4.5% to £241m (€285m) thanks in part to Greencore’s recent acquisition of Freshtime, a UK-based food company which specialises in food-to-go salads, chilled snacks and prepared produce.

Excluding the Freshtime acquisition, Greencore’s food-to-go business grew by just 0.5% on a like-for-like basis.

Greencore’s convenience food division recorded a 3% decline in sales to £127m (€150m) for the quarter, which was mainly due to the company exiting a ready meals business. Greencore reaffirmed its outlook for 2020 to be a year of profitable growth.

“We continue to make good strides in the diverse, attractive and growing UK food to go market. Our strategy to drive growth, to deepen customer relevance and to pursue a distinctive and repeatable way of working is well embedded across the business. Following a steady start to 2020, we look forward to delivering a year of profitable growth,” said Patrick Coveney, CEO of Greencore.