Investors have been tucking in to Greencore shares – the world’s largest sandwich maker – in 2019.
Starting at £1.77, the stock has been pretty consistent in its climb, eventually striking a high of £2.31 at the end of April. That was its best price since the very beginning of last year, the company overcoming what was, all told, a rocky 2018. Greencore shares are currently trading at £2.28.
The firm’s first quarter update back in late-January was a bit tasty. Revenue from continuing operations rose to £365.5 million, a 5.8% increase on a pro forma basis. On a reported basis revenue fell 5.7%, reflecting the offloading of its US business in November 2018.
Greencore said that the main driver of that Q1 growth was its ‘food to go’ category, which saw a 6.4% jump in revenue on both a pro form and reported basis. Elsewhere the firm saw a 4.7% pro forma jump in the rest of its continuing operations, one that turns into a 21.2% on a reported basis.
As for Brexit, the company stated that though it believes the medium-term risks are ‘manageable’, the challenges associated with a no-deal outcome are ‘uncertain’.
Currently analysts are expecting Greencore to post a full year sales of £1.49 billion, with adjusted operating profit of £107.9 million and adjusted basis earnings of 16.2p per share. Investors, then, will want to hear that the company is well on its way to delivering those numbers when it posts its half year results on Tuesday.
Greencore shares have a consensus rating of ‘Hold’ alongside an average target price of £2.16.
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