Greencore’s current financial year is set to be “an epically tough” one, as it deals with both ongoing supply and demand problems, Martin Deboo, an equity analyst with investment bank Jefferies, wrote in a report on the eve of the trading update.
The company’s £530 million enterprise value, comprising its market capitalisation and debt, is currently about four times what analysts are pricing in for its 2023 earnings before interest, tax, depreciation and amortisation. That’s below the multiple on which it was trading at the height of the financial crisis.
Still, the company said this week that it has “substantially recovered” the inflation it experienced over the past 12 months. The big question is whether Greencore can continue to do so, according to Doriana Russo, an analyst with HSBC. But at some stage, the new CEO will be expected to come up with a new grand plan. Roland French, an analyst with Davy, seems some obvious strategic issues.
Philips seeks a perfect fit in Brown Thomas (19/08/2005)
Doubt it.
Doubt it.