The food-to-go producer expects revenue for the year to September 25 to come in 14% lower at £1.2bn, with underlying earnings (EBITDA) of £85mln (from £142mln last year), which includes a £10mln of coronavirus operating costs.
Sales in the last quarter slid 19%, improving from a 36% fall in the third quarter.
Although UK consumer sentiment and broader economic activity remain both fragile and subdued, the firm saw a progressive uplift in demand when the economy started reopening.
Greencore said it worked with its customers to tailor product ranges, formats and service models to this new environment.
Net debt at year-end is estimated to be £345mln, while the company has total committed debt facilities of £578mln and eligibility to access £300mln under the Bank of England’s Covid Corporate Financing Facility.
“We welcome these improving trends from a group that has worked so hard in the face of so many challenges over the last six months,” analysts at Shore Capital noted.
“The Coronavirus crisis has served to be a catalyst for dramatic adjustment to the domestic food system, centred upon working from home. Such behavioural shift is the key factor behind a structural adjustment in the size of the British food & beverage channel to us, underscored by more recent restrictions on the pub and restaurant trade.”
Shares dropped 10% to 91.8p early on Monday.
–Adds analyst comment, shares–
Published at Mon, 05 Oct 2020 08:06:00 +0000-Greencore estimates full-year revenue to drop 14%