UK manufacturer of convenience foods Greencore Group, announced today that it has entered into a conditional agreement to sell the interests in its molasses trading businesses for £15.6 million.
The interests will be sold to United Molasses Marketing in a bid to strengthen Greencore’s balance sheet, according to the food producer.
The marketing company is involved in the import and distribution of animal feed across Ireland.
In a separate announcement, the FTSE 250-listed firm reported a 34% drop in revenue to £240 million in the quarter to June 26 2020. However, the company predicts “encouraging” improvement in the demand for food-to-go categories for the rest of the year.
Greencore Group has reopened three of its UK plants and extended production at its Northampton site to accommodate this growing demand.
“Clearly sales will improve as lockdown ends, but the long-term outlook remains uncertain given more people working from home and higher unemployment levels,” analysts at Peel Hunt commented in a note to clients.
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