Greencore also recorded lower volumes in the distribution of third-party products, which were down 10 per cent year on year. Its other convenience sector saw reported revenue up almost 28 per cent to £171.9 million with strong volumes from its ready meals business.
Lower volumes and a lag in recovery of inflation over the final months of 2022 also led to profit conversion that was behind management expectations, with the group pledging to immediately implement further measures to tackle this, focusing on contract margin enhancement and delivery of its operational excellence programme. •
Chief executive Dalton Philips said the market was difficult and volatile, with the business getting off to a slower start to the year than envisaged. However, the new chief executive, who stepped into the role four months ago, said he remained “highly enthusiastic” about the group’s longer-term future.
“We are doubling down on our initiatives on inflation recovery, and in parallel, driving harder and faster to get our cost base to the right level,” he said. “Strategically we are well positioned for the future growth given our customer base, the categories in which we operate, our operational capabilities and critically the people behind all of this. However, the immediate focus is to tackle the shorter-term self-help actions which set the foundations for margin recovery.