DAVY VIEW

The long-term effects of the pandemic on consumer purchasing patterns are still unclear. In the immediacy, addressing productivity will become table stakes in rebuilding profit in a reshaped demand environment. In a more operationally levered (lower volume) situation, small changes in volumes may have an outsized impact on profits. While the revenue rebuild in Greencore’s key food-to-go category from the April trough has been noteworthy, visibility is low and the effects of more recently imposed mobility restrictions remain unclear.