Greencore on track
August 14, 2009
Greencore group PLC, the Irish food company that produces convenience foods such as cakes, sandwiches, sauces and soups for the U.S., U.K. and Netherlands, says that it is on track to post an operating profit for this year that will be “modestly ahead” of last year.
The group announced that its convenience food sales in the U.K. and U.S grew in the four months ending July 24th by 2.5%.
Clive Black, an analyst at Shore Capital said that Greencore had managed to survive challenging business conditions and upgraded his recommendations for those interested in shares from hold to buy. He said that the groups pre-packaged sandwich business represented strong opportunities in the U.S.
Greencore has had success in providing U.K. garage forecourts and supermarkets with pre-packaged sandwiches and plans to set up trials in the U.S. to see if it can imitate its performance there.
The company is also a supplier of malt to brewers and distillers across Ireland, Belgium and the U.K. However, it says that the business has found it difficult to deal with the wane in beer consumption within the U.K. market over the past two years. Greencore remains positive saying that there have recently been signs of recovery in the market. The company also points out that a drop in energy prices could help to offset the slump in demand. It hopes to put in a solid performance by the end of the year.
Thanks to online.wsj.com for the above quotes, for more information on this article please visit their website.
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