LONDON (ShareCast) - (Sharecast News) - Convenience food group Greencore said on Monday that was withdrawing its full-year guidance and scrapping its interim dividend amid reduced demand for its food to go products due to the coronavirus outbreak.
The company said that since the lockdown was announced on 24 March, there has been a "marked" reduction in demand for its food to go categories in grocery retail, which has been partly offset by the sustained volume growth in its other convenience categories.

"The group is working hard with customers as well as government agencies, including the NHS and local communities, to leverage our capability and capacity to provide high quality fresh prepared food to both consumers and frontline workers during this pandemic," it said.

It also noted a number of measures to protect profitability and cashflow. The company said it is tightening its food to go production network and furloughing impacted colleagues, using the government's Coronavirus Job Retention Scheme. In addition, it is working to eliminate non-essential operating costs.

The board and executive directors have voluntarily agreed to take a 30% cut in respective fees and base salary for three months, while the wider group leadership team is taking a voluntary reduction of 20% of base salary.

Greencore said it has decided to suspend financial guidance for FY20 and its outlook for FY20 should no longer be considered current in light of the "ongoing level of uncertainty around the possible duration and impact of Covid-19".

In addition, the interim dividend payment for FY20 has been cancelled.

"While the duration and impact of this pandemic remains uncertain, all of our stakeholders are continuing to work together to protect the business.

"The board is ensuring that Greencore remains a purposeful and hugely relevant business, feeding the UK right through this period, and importantly that it is also equipped with the team, strategy, reputation and balance sheet to accelerate forward when the pandemic passes."

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