DAVY VIEW

The marked reduction in demand for Food-to-Go (FtG) products is not unexpected given its strong dependence on workforce footfall. Growth in longer-lived products will only partially offset the decline. In response to COVID-19, Greencore is adjusting its production network and furloughing impacted employees. Full-year guidance has been removed and the interim dividend will not proceed. Planned capex projects will be deferred, while the Board and management teams have agreed to a temporary reduction in pay. A newly agreed short-term committed debt facility increases the group’s liquidity to £265m.