Greencore profit held back by rail strikes and bank holiday
Food manufacturing giant Greencore has seen profits dented by rail strikes and the bank holiday for the Queen’s funeral in September.
In a fourth quarter and full year trading update, the convenience food maker placed its adjusted operating profit at the lower range of £72-77m.
The London-listed firm said it had been forced to absorb “the impact on volume and operations of rail strikes and the unscheduled bank holiday in September 2022.”
However, the group posted swelling revenue of approximately £1.7bn, compared to £1.3bn in the 2021 financial year.
While Greencore said it currently does not see an impact from economic pressures as “consumer demand has held up well,” the group remains “watchful and cautious about the potential impact of cost-of-living factors through the year ahead.”
The group is focusing on the recovery of inflation “through all mechanisms available” and working with customers and supply partners “to mitigate the ongoing impact of the persistently high inflation across the industry on consumer prices.”
It said it was currently mulling whether to bid for or renew contracts based on their economics, including the ability to recover inflation.