Greencore Group has announced a slight increase in sales
volumes at its convenience foods arm over the last four
months despite the manufacturing giant warning of
worsening conditions in the UK market.
Greencore reported a 7.5% drop in turnover for the four
months to 31 July to ?284m (?224.2m) but said sales
volumes at its convenience foods division had increased
by 3%, contributing to an overall increase in
like-for-like sales of 7%.
?The underlying sales performance of our convenience
food division remained solid in the four months ended 31
July 2008 against the backdrop of a notable
deterioration in consumer sentiment in the UK since
June,? the company said in a statement.
?We continue to confront the impact of input price
inflation, as outlined in our half year results, and
have made good progress in restoring margin at our
ambient cooking sauces and pickles business. The group
expects to record overall like-for-like constant
currency convenience foods sales growth in the second
The news comes after Greencore earlier this year was hit
by the revelation that a former executive had concealed
costs in its mineral water business, with the company
predicting a ?9m (?7.1m) hit to its operating profits
for the year.
The objective of stabilising the water business has been
achieved with the appointment of a new water leadership
team and the implementation of a number of improvement
initiatives,? Greencore said.