Q3 Trading 1
Revenue Revenue Growth (versus FY21)
GBPm Q3 9 months
Reported Pro forma Reported Pro forma
Group 486.2 +35.0% +25.8% +34.1% +31.4%
Food to go categories 333.4 +41.0% +31.2% +45.1% +41.1%
Other convenience food categories 152.9 +23.5% +15.5% +16.6% +15.7%
Revenue Revenue Growth (versus FY19)
GBPm Q3 9 months
Reported Pro forma Reported Pro forma
Group 486.2 +33.2% +22.3% +17.9% +14.1%
Food to go categories 333.4 +33.0% +19.0% +19.7% +11.9%
Other convenience food categories 152.9 +33.7% +30.2% +14.4% +18.9%
PERFORMANCE 1
Group reported revenue increased in Q3 22 by 35.0% year on year, driven by continued strong growth in both food to go and other convenience categories. Pro forma revenue grew by 25.8% year on year, after adjusting for the impact of an additional week in FY22's accounting period and for movements in foreign exchange. Pro forma revenue was 22.3% above equivalent pre-COVID levels in Q3 19
Pro forma revenue growth in Q3 22 was driven by a combination of increased volumes, a low-teen percentage increase in underlying pricing, and increased revenue in the Group's Irish ingredients trading business. Notwithstanding the inflationary challenges impacting the broader
Pro forma revenue in food to go categories increased in Q3 22 by 31.2% year on year, driven by continued recovery in underlying food to go demand and augmented by the onboarding of new business wins and increased pricing. The strongest growth was seen in customers that have a balanced portfolio mix of urban and suburban locations. Pro forma revenue was 19.0% above equivalent pre-COVID levels in Q3 19
Pro forma revenue in other convenience categories increased by 15.5% year on year, driven by increased underlying pricing and higher revenue in the Group's Irish ingredients trading business. There was a modest reduction in grocery volumes in Q3. Pro forma revenue was 30.2% above equivalent pre-COVID levels in Q3 19
Profit momentum improved in Q3 22 driven by volume growth and better conversion due to enhanced productivity. The Group's Excellence programmes, enhanced through Better Greencore, have underpinned this recovery. Cost inflation remains elevated across the
Consistent with the Group's capital management policy, on
OPERATING & STRATEGIC UPDATE
The Group maintained high operational service levels during the quarter and worked closely with its customers and supply partners to manage through ongoing supply-side challenges
Onboarding of new business wins continued during the quarter, across the Group's categories and customers, expanding its product ranges and channel reach. The Group has continued to work closely with customers on product and range innovations to mitigate the impact of inflation at consumer level
The Group's strategic capital investment programme of approximately
Better
The Group advanced its sustainability agenda in Q3 22 as it builds the necessary data and systems framework to measure performance effectively. It also commenced a collaboration project with a key customer on category level eco-footprinting
OUTLOOK 2
The Group continues to deliver good year on year volume growth while recovering significant levels of ongoing inflation and enhancing profit conversion. It is confident in its ability to deliver very strong year on year profit and cashflow progression in the second half of the year, its peak seasonal trading period
The Group expects to generate an FY22 Adjusted Operating Profit outturn of between
Inflation trends are expected to continue into FY23 and the Group continues to monitor closely the impact of the inflationary environment on consumer sentiment and demand, as well as working with customers and supply partners to mitigate the ongoing impact on consumer prices
Commenting on the performance,
'I am encouraged by the progress we have made during Q3 against the backdrop of inflationary pressures for the industry. Revenue and profit conversion through the period has been encouraging and we are confident in our ability to continue to manage the various industry challenges and end the year strongly. Our leading market positions, close customer relationships and intense focus on efficiencies mean that we look to the future with optimism, and we expect to deliver a strong year on year improvement in profitability, cash flow and returns for FY22'
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