Greencore on track to meet EPS expectations after Q3 revenue growth

29th Jul 2014 08:51

- On track to meet EPS growth expectations- Q3 revenue up 6.7% yoy - Revenue lower in I&P divisionConvenience foods group Greencore said it continued to anticipate earnings per share (EPS) growth in line with market expectations after increasing third quarter revenue by 6.7% year-on-year (YOY). Within the convenience foods division, revenue climbed 8.7% YOY and 9.3% on a like-for-like (LFL) basis. UK LFL revenue within the division rose 10.1% compared to the previous year and despite ongoing challenges in the overall grocery market, the food-to-go market was buoyant throughout the period, driven in part by growth in small stores. In the US, constant currency revenue was 16.9% higher than in the prior year, although LFL growth was just 4%. In the much smaller ingredients and property division, which now makes up less than 5% of group activity, revenue totalled £15.9m in the third quarter, a drop of 20.9% or £4.2m year-on-year and 18.2% lower at constant currency. In the year-to-date, reported group revenue was 7.7% ahead of the same period last year, while on a LFL basis it rose 8.5%. Year-to date-revenue in the convenience foods division was £898.4m, 8.5% higher than the prior year on a reported basis and up 9.3% on a LFL basis. The group also has agreed to sell housing land in Littlehampton in West Sussex, for about £16.5m, which it expects to receive this financial year.Although the group will incur a non-cash charge of about £3.5m against the carrying value of investment property, this is expected to be fully offset by other legacy matters in the period.Shares had risen 1.38% to 278.30p by 08:50.NR