DUBLIN: Convenience food group Greencore reported a 46 per cent rise in group revenue in its first half of the year, on the back of its acquisition of US food group Peacock Foods late last year. Revenues at the Dublin headquartered group rose to £1,010.3 million (€1.2bn) in the 26 weeks to March 31st 2017, as earnings (EBITDA) rose by 31.2 per cent to £79.1 million. Group operating profit was up 27.1 per cent to £55.3 million, while pre-tax profit rose by 29 per cent to £34.6 million. Despite the “challenging political, economic and customer backdrop”, the group’s Irish and UK business saw strong growth in the period, with revenues up by 16.1 per cent, driven by the “continuing strength” of the Food to Go business.
Greencore acquired Peacock Foods, a fast-growing US convenience food manufacturing partner, in December 2016, and the move has has delivered “a step-change” in Greencore’s operating scale, the company said. However, the group noted that it now has increased exposure to GBP/USD foreign exchange translation movements as a result of theacquisition. “If the current rates are sustained, this will result in a modest adverse impact on translated US profits in the second half,” the company said.
Following the acquisition, Greencore said it will now have two reporting segments; onvenience foods UK & Ireland; and convenience foods US. Patrick Coveney, chief executive said it was a “tranformational period” for the food group. “Against a backdrop of considerable change across the group, we are pleased to be reporting strong revenue and profit growth for the first half of the year. In the UK, we have delivered significant expansion and investment following recent new long-term business wins, as our Food to Go business continues to grow rapidly. In the US, the addition of Peacock Foods has transformed our market and channel position and has given us a growth platform of real scale.”
