Greencore says rail strikes, extra bank holiday have dented FY profits

11th Oct 2022 07:22

(Sharecast News) - Irish convenience food group Greencore said on Tuesday that full-year adjusted operating profit and earnings per share were set to be at the lower end of the expected ranges, partly due to rail strikes.

In an update for the year to 30 September, the company said revenue is expected to rise to around £1.7bn from £1.3bn.

However, adjusted operating profit and EPS will be at the lower end of the guided ranges of £72m to £77m and 9.2p to 10p. This is due to the impact on volume and operations of rail strikes in the fourth quarter and the unscheduled bank holiday in September.

Greencore said consumer demand has held up well. However, it remains "watchful and cautious" about the potential impact of cost-of-living factors through the year ahead.

"We remain focused on the recovery of inflation through all mechanisms available and are working with our customers and supply partners to mitigate the ongoing impact of the persistently high inflation across the industry on consumer prices," it said.

"We have substantially recovered the inflation that we have experienced over the last 12 months, and we are making decisions whether to bid for or renew contracts based on their economics, including the ability to recover inflation."