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(Alliance News) - Greencore Group PLC on Tuesday said its first half performance was hurt by lockdown measures, reducing demand for on-the-go food.
Greencore shares were 13% lower at 148.50 pence each on Tuesday morning, the worst mid-cap performer in London.
The Leinster, Ireland-based firm has seen sales recover somewhat as restrictions ease, though it noted revenue in the early weeks of the second half of its financial year were still 14% below pre-pandemic levels.
Revenue in the six months ended March 26 fell 19% year-on-year to GBP577.1 million from GBP712.7 million. Greencore swung to a pretax loss of GBP1.8 million from a GBP27.3 million profit a year earlier.
The company said revenue was hurt by a "reduction in consumer mobility as a result of tiered restrictions and lockdowns in the UK".
"This has been a challenging period for Greencore, but the consistent build in our revenues since early March as lockdown measures have eased and Covid-19 cases have fallen give us real cause for optimism. Our focus now is on rebuilding revenue, profitability and cash flow momentum as the UK economy reopens. Our recent business wins are a great endorsement of our continuing relevance in the UK convenience food landscape," Chief Executive Officer Patrick Coveney said.
In its food-to-go units, pro forma revenue during the first seven weeks of the second half was more than double what it was a year earlier, though down 14% from financial 2019, before the pandemic hit. The pro forma figure is adjusted to factor in the disposal of Premier Molasses. Greencore agreed to sell its molasses business for around GBP15.6 million back in July of last year.
Greencore decided against an interim dividend, unchanged year-on-year.
Looking ahead, it expects adjusted operating profit for the full year to top financial 2020's GBP32.5 million. In the first half of the current financial year, adjusted operating profit was almost wiped out to GBP200,000 from GBP38.3 million.
By Eric Cunha; ericcunha@alliancenews.com
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