Greencore earnings to beat market consensus despite British troubles

CONVENIENCE food group Greencore, in which property developer Liam Carroll holds a 21.5% stake, has upgraded its earnings forecast by 5% for the full year.

The group also reported progress on its 970 acres of prime development land, which includes key sites in Mallow and Carlow, that are in the early stages of development.

The world’s biggest sandwich maker said adjusted earnings per share for financial year 2007 would beat market consensus of 28.4c by 5%.

This reflects a modest increase in anticipated group operating profits, together with a reduction in the group’s tax charge, consistent with a change in the mix of group profits, the company said.

However, the group’s core convenience food division should see an 8% fall in operating profits due to unseasonal weather in Britain and higher raw material costs.

Greencore warned that market conditions in Britain, where it supplies sandwiches, ready meals and sauces in own-brand and branded ranges to Britain’s multiple grocery chains, were challenging.

However, it was confident a good operational performance and better prices would restore the group to healthier earnings in 2008.

However, progress in the malting division — where prices have increased sharply — would counter the drop in earnings at the core operations.

The group is also making good progress regarding its land. In July, the Mallow site was zoned for high-density mixed use and tourism/leisure use, with specifics to be determined by agreement with Cork County Council.

Carlow County Council is considering the company’s Carlow Gateway submission, which was made in November 2006.

The group has also lodged a planning application for the first phase of a retail scheme on part of its 40-acre site in Athy, with a second to follow in the coming months.