Food group Greencore said sales rose 7 per cent this year as a rising number of consumers opted to eat at home, driving demand for its convenience foods.
The company also predicted strong operating profit growth in its convenience foods sector for the full year, and expects to "modestly exceed" previously guidance of 16 cent in adjusted EPS.
In the four months to July 23rd 2010, Greencore reported sales of €281.2 million, with its food to go and prepared meals categories particularly performing well.
"As highlighted at half year the UK consumer trend of increased 'at home' food consumption continues to support demand for our overall food offering," the company said in a statement today. "Additionally, an increase in smaller convenience retail store formats is underpinning food to go volume in particular."
Greencore said it was gaining in market share in the UK, particularly in chilled ready meals, growing its share to 10.4 per cent in the year to July 11th, 2010. Sales growth has been driven mainly by increases in volume, with prices remaining flat overall.
In the US, sales growth is strong at constant currency, recording 20 per cent growth in the four months. However, this is down on the growth of 27 per cent experienced in the first half of the year.
"Whilst good sales growth is expected in FY11 it is unlikely to be at levels seen over the past 18 months from our existing customers and facilities," Greencore said.
The group said it expects to record an operating margin on continuing operations for the year of more than 6.5 per cent in convenience foods.
Shares in Greencore rose 2 per cent on the Dublin market today, reaching €1.30 shortly before 3.15pm.
