Revelations weaken a vulnerable Greencore

GREENCORE’S shock revelations last week that it will write-off €21 million in operating profits was a bolt out of the blue.

Shares in the group had already been falling after the group reported a 14% drop in pre-tax profits for the six months to the end of March. Pre-tax profits fell from €34.86m to €30.035m, while sales rose by 2% to €648.7m.

Currency fluctuations were to blame, but crucially, at the operating level the group had met the earnings expectations of the market.