Greencore Reports ‘Marked Reduction’ In Food-To-Go Business In UK

Convenience foods firm Greencore has reported a ‘marked reduction’ in demand for its food to go categories in the UK, since the British government escalated measures to combat the coronavirus outbreak on 24 March.

In a statement, Greencore said that this slump has been partially offset by ‘sustained volume growth’ in its other convenience categories.

The business said that it is taking ‘prudent measures’ to protect profitability and cashflow, by tightening its food to go production network, and seeking to eliminate non-essential operating costs.

The group’s board and executive directors are to take a 30% reduction in fees and base salary for a period of three months, with its wider group leadership team taking a 20% salary cut.

It has also announced the suspension of financial guidance for FY20, adding that the group’s outlook for the year, which was included in its full-year 2019 results statement and Q1 trading update should no longer be considered current.

ESM