Shares of Greencore Group PLC (LON: GNC) rallied over 8% today to erase yesterday’s losses after the food company reported lower-than-expected projected full-year earnings.
Yesterday, Greencore said it expects to report EBITDA of £85 million for the 12-month period ending September 25. This is below the market’s expectations of £102 million for the reported period.
Greencore said it had to take a loss in excess of £10 million on the back of the impact of the Covid-19 outbreak. Net debt is reported at £345 million.
“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,” said CEO Patrick Coveney.
“We are realistic but also confident in our plans for FY21 and remain excited by Greencore's longer term prospects”.
Revenue is expected at about £1.26 billion for the reported period, lower from £1.45 billion a year ago. The company is due to report its full-year results on November 24.
Greencore share price rallied around 9% to trade at 103.3p, after losing nearly 7% yesterday to print a multi-year low.
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