In contrast, Irish convenience food producer, Greencore Group (LSE:GNC, Financial), plunged during the quarter. Although the company’s fourth quarter 2017 sales grew in both the U.K. and U.S., concerns arose about the U.S. business. Greencore was unable to cultivate new U.S. customer relationships, as evidenced by single-digit volume growth and underutilized facilities in Rhode Island. The company plans to restructure its U.S. network to match capacity to its commercial pipeline. Due to the delayed timing of this rationalization, Greencore expects U.S. profits to remain stagnant for the first half of 2018.
From Bernard Horn (Trades, Portfolio)'s first quarter 2018 shareholder letter.
