Greencore interims up in 'challenging' UK market

By Frank Prenesti

Date: Tuesday 21 May 2019

Greencore interims up in 'challenging' UK market

(Sharecast News) - Convenience food maker Greencore on Tuesday reported a 17% rise in interim adjusted pre-tax profit as it faced a "challenging" UK market with a strong performance by its food-to-go business offset by a softer ready meals market.
Greencore said its adjusted pre-tax profits rose to £37.7m from £32.2m on the back of a 4.6% fall in group revenue to £701.4m. Adjusted operating profit rose by 0.9% to £44.9m.

The interim dividend was increased 11.4% to 2.45p a share.

The company last November sold its US operation to Heartside Foods for $1.075bn (£846m), making it more dependent on the UK for earnings.

"While recognising that trading conditions in the wider UK grocery sector remain challenging, the growth outlook for our business continues to be encouraging, underpinned by favourable consumer trends and ongoing investment by our customer," said chief executive Patrick Coveney.

"As a result, we believe that our market positioning, capability set, customer relationships, well invested asset network and proven economic model will deliver strong future growth, cash generation and returns."

The company booked a £25.4m exceptional charge as it restructured its debt and financial derivatives portfolio "to reflect the removal of US dollar assets from the business and also refinance its primary sterling bank debt agreements" in the wake of the US deal.

Greencore added that it had appointed Peter Haden, previously head of the UK division, as its chief operating officer.


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