Greencore Share Drop Linked To Starbucks Contract Loss
Greencore's recent share slump has reportedly been triggered by the loss of a major contract with US coffee firm Starbucks, according to The Irish Times.
Last week the convenience foods giant responded to the 14% drop in its share price value, saying that the group was not aware of any developments that would change its performance outlook.
The company's statement noted that there had been 'some level of churn' in its US business operations, which The Irish Times believes to refer to the loss of a contract for frozen sandwiches with Starbucks.
Greencore said that it was refocusing its activities at its plant in Jacksonville, Florida, which reportedly manufactured products for the coffee chain. It was anticipated that the impact on profitability would be minimal, however, accordion to the group's statement.
In July, Greencore reported revenue of £636.5 million in the third quarter of its financial year, which represents an increase of 76.6% on a reported basis, and of 11.8% on a pro forma basis. It anticipated that its 2017 performance would remain in the range of current market expectations, as a result of challenging trading conditions.
The company plans to issue its next trading update on the release of its full year results on 28 November.
© 2017 European Supermarket Magazine – Article by Sarah Harford.