FDBusiness.com

Failed Merger Bid Hits Greencore’s Profits

 Breaking News
  • UK Supermarket Sales Continue to Increase Supermarket sales in the UK have increased by 3.6% compared with the same period last year, according to the latest grocery market share figures from Kantar Worldpanel, for the 12 weeks to 10 September 2017. This is the sixth consecutive month in which sales have increased by more than 3%. Fraser McKevitt, head of retail and [...]...
  • Much ‘Brexit’ Fatigue in Brussels “There is a lot of ‘Brexit’ fatigue in Brussels, which is a pity because it is such an important issue,” according to Mella Frewen (pictured above), Director General of Brussels-based Food, Drink Europe, which represents Europe’s largest manufacturing industry. Mella Frewen was addressing the 4th National Food & Drink Business Conference and Exhibition held recently [...]...
  • Sweet Dreams For UK Chocolatier After Factory Investment UK-based chocolatier Sweetdreams has invested £500,000 in a new 15,000 sq ft factory which will drastically increase the company’s output and create a variety of new jobs. Sweetdreams, the creator of Choc Nibbles, has experienced unprecedented growth in the past twelve months and now the business is looking forward to maintaining its rapid rise in the [...]...
  • Isle of Harris Distillery Wins Excellence in Branding Category at Inaugural Scottish Gin Awards The Isle of Harris Distillery has won the McLaren Packaging-sponsored Excellence in Branding category in an inaugural professional drinks competition to assess Scotland’s booming gin business. A new annual business event established to celebrate innovation and excellence in gin distilling in Scotland, the Scottish Gin Awards is held in partnership with The Scottish Gin Society. Michael [...]...
  • Halewood International to Launch Ideagen Q-Pulse Major drinks manufacturer, Halewood International, is to launch a UK-wide quality management system using software from Ideagen. The producers of Crabbie’s, Lambrini and Red Square Vodka – among other brands – will adopt Ideagen Q-Pulse for the management of key operational documentation such as quality policies, specification information, consumer feedback and internal and external audits. Q-Pulse will become [...]...

Failed Merger Bid Hits Greencore’s Profits

Failed Merger Bid Hits Greencore’s Profits
May 25
15:46 2011

Greencore, the UK and international convenience food group, has reported a 2.2% decline in operating profit to Eur27.0m on a constant currency basis on sales up 4.4% to Eur441.8m for the first half ended March 25th 2011. Operating profit was 1.7% ahead after the impact of currency translation and sales rose by 7.9% on the same basis.

However, Greencore incurred an exceptional cost of Eur17.7m (pre tax) during the first half with Eur13.6m relating to transaction costs associated with its failed proposed merger with Northern Foods, and those relating to an acquisition in the US. Pre-tax profit from continuing operations for the period was Eur2.5m compared to Eur10.7m for the first half of 2010.

Greencore’s Convenience Foods division, which accounts for 90% of group activity, had a good first half in challenging market conditions growing constant currency sales by 4.3% and constant currency operating profit by 0.7% resulting in a modest 20bps reduction in operating margins. The sales performance was encouraging in the light of the challenging trading environment and significant disruption from severe weather in four of Greencore’s largest factories in the UK and the US during December/January.

Patrick Coveney, chief executive of Greencore.

However, raw material inflation has been a significant factor and will be an area of focus for management for the foreseeable future. The impact has been largely offset during the first half through selective price increases, product re-engineering in conjunction with retail partners and significant efficiency programmes throughout the business, such as the Lean Manufacturing and Total Lowest Cost initiatives.

“Our business continues to perform well, despite some of the recent challenges in the UK and US food markets. We are delighted to have delivered sales growth for the first half of 7.9%,” comments Patrick Coveney, chief executive of Greencore. “This delivery is grounded in close customer relationships, strong operational performance, a passionate Greencore team and a focus on driving down financing costs following our disposal programme last year.”

He adds: “Clearly, in the last six months we devoted considerable time and resources to corporate development activity and it was disappointing not to be able to execute a combination with Northern Foods. However, we learnt an enormous amount from the process and we are optimistic about our ability to drive growth and shareholder value from both our existing business and from corporate development in the months and years ahead.”

About Author

colin

colin

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 19, 2017PROCESS EXPO 2017
  • September 22, 2017Global Summit on Food & Beverages
  • September 26, 2017FHM2017
  • September 26, 2017POWTECH
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements