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Strong Annual Operating Performance by Refocused Greencore

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Strong Annual Operating Performance by Refocused Greencore

Strong Annual Operating Performance by Refocused Greencore
November 17
13:10 2010

Following three strategic disposals to become sharply focused on its UK, Irish and US convenience foods operations, Greencore has reported a 17.6% rise in group operating profit from continuing operations to Eur59.7m on sales up by 6.9% to Eur856.9m for the year ended September 24th 2010. Group operating margin from continuing operations improved by 63bps to 7.0% and Greencore also achieved a 31.8% reduction, year on year, in group net debt to Eur193.4m.

Sales in continuing businesses at the convenience foods division advanced 10.7% to Eur784.5m and operating profit increased 21.1% to Eur54.1m as Greencore capitalised on consumer trends of increased ‘at home’ and ‘on the go’ food consumption and benefited from lower UK manufacturing capacity and the further delivery on its lean and operating efficiency programmes. Sales at Greencore’s US convenience foods business grew by 18%.

Following the disposal of its malt, water and continental European convenience foods businesses for an aggregate total consideration of Eur142.3m, Greencore is a leaner, more focused convenience foods group with two key geographies, the UK and the US. The remaining, non-core ingredients and property business is trading satisfactorily and represents less than 10% of group sales and operating profit.

“We have made enormous progress in reshaping our group into a focused, growing convenience food business this year. This is reflected in the strong sales, margin and profit growth in the results of our continuing business,” points out Patrick Coveney, group chief executive of Greencore. “Furthermore, an effective disposal programme has dramatically reduced group net debt and provides the basis for further development in convenience food.”

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