LONDON (ShareCast) - (Sharecast News) - Irish convenience food group Greencore posted a drop in third-quarter sales on Tuesday as it took a hit from the Covid-19 pandemic, and announced the sale of its molasses businesses.
In the 13 weeks to 26 June, group revenue fell 34% on a reported basis to £240.6m. Greencore said this was mainly a reflection of the impact of the coronavirus crisis on its food to go categories.

Revenue in the food to go category slid 63% in April and 58% in May. There was some improvement in June and July, however, with sales down a more modest 41% and 35%, respectively.

In the year to date, reported revenue fell 10.6% to £953.3m, again reflecting the impact of the coronavirus crisis on performance at the end of the second quarter and during the third.

Greencore also announced that it has agreed to sell interests in its molasses trading businesses to United Molasses Marketing for around £15.6m in cash. The proceeds will be used to further strengthen the balance sheet, it said.

Chief executive officer Patrick Coveney said: "Our group has traded resiliently, with our deep customer relationships strengthened further, and we are encouraged to see a sustained improvement in demand and category mix.

"We remain confident in the relevance and attractiveness of the food to go channels and categories that we serve. In addition, we are well positioned for new business opportunities and a return to growth as the pandemic subsides."

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE