WASHINGTON: Greencore, the Irish-based but London-listed food company, has reported a 13.5% increase in pre-tax profits for the year to the end of September. Figures published this morning show Greencore, the largest maker of pre-packaged sandwiches in Europe, had revenue of £1.34 billion, up 5.4% year-on-year. Adjusted pre-tax profits rose to £78m from £68.7m.
Greencore said it experienced growth in the US, where it supplies a number of large coffee chains and convenience stores with its food-to-go products.
Revenue there was up 15% on a like-for-like basis and 28% including an acquisition during the year. The company said it was proposing a final dividend of 3.75 pence per share, which would give a total dividend of 6.15 pence per share, up 12.8%. “Greencore has had another strong year and our clear food to go led strategy has continued to drive growth in both the UK and US markets,” the company’s CEO Patrick Coveney said.
“We increased our investment in major capacity and capability improvement projects during the year, in each case underpinned by long term customer relationships. Our strategy, momentum and pipeline of opportunities leave us well placed to deliver further progress in FY16 and beyond,” he added.
Operating profits at the company’s Convenience Foods division rose by 11% to £89.6m from £80.7m while like-for-like revenues grew by 6% to £1.290 billion. UK revenues in the division rose by 4.7% while US revenues raced 15.4% ahead, despite some product exits.
The division includes food to go, prepared meals and grocery. The company said its UK food to go division represents more than 40% of group revenue and is made up of sandwiches, sushi and salads.
Its prepared meals division makes up about 20% of its group revenue, while its grocery division represents about 20% of group revenue. The US convenience foods division, which makes up about 15% of group revenue, saw a 28% increase in reported revenue compared to last year.
Meanwhile, revenues in Greencore’s Ingredients and Property division fell by 7.5% to £50.1m from £60.1m while operating profits decreased by 4.5% to £2.1m. This division makes up less than 5% of group revenue and the company said the revenue decline was mainly due to lower commodity prices in edible oils.
