Greencore shares (LON: GNC) dropped 10% on Monday after the group revealed a 19% fall in sales over the last quarter.
The food-to-go producer said in its latest results that revenue for the year ending 25 September fell 14% to £1.26m.
Greencore’s revenue continues to grow over the fourth quarter thanks to the reopening of the economy.
Chief executive, Patrick Coveney, commented on the results: “The fourth quarter of our financial year hasseen an ongoing improvement in demand for our products.
“I am hugely proud of the way that our people are supporting each other and our customers during this extraordinarily challenging period, and it is their hard work and dedication that is driving a resilient and improving trading performance.
“Our agile business model, the depth of our customer relationships and the strength of our product range has enabled us to already capitalise on new business opportunities that will help underpin the build back in Group revenue. We are realistic but also confident in our plans for FY21, and remain excited by Greencore’s longer term prospects,” he added.
Despite the slide in sales, analysts at Shore Capital said in a note they saw “improving trends” in recent months.
“The Coronavirus crisis has served to be a catalyst for dramatic adjustment to the domestic food system, centred upon working from home. Such behavioural shift is the key factor behind a structural adjustment in the size of the British food & beverage channel to us, underscored by more recent restrictions on the pub and restaurant trade,” said analysts from Shore Capital.
Greencore shares (LON: GNC) are currently trading -9.23% at 92,40 (1413GMT).
