Greencore: Results in line with targets

GREENCORE Group, which is active in the British and US convenience food retail sectors, said trading continues in line with expectations for the year.

It said in a market update, trading through the late summer and into September “was fully in line with expectations with a robust group performance overall.”

The group said it expects to report an adjusted earnings per share (EPS) of 16.5 cent for the year.

That includes 3.5 cent of earnings in respect of activities discontinued in the current financial year, it said. Sales from continuing businesses in convenience foods are expected to be 8% higher than in full-year 2009.

Group operating profit on its continuing businesses is expected to be 20% ahead of the previous year, it said.

Looking its next trading year, Greencore said that based on the run rate of the business and an expected significant reduction in interest charges, it expects to deliver another strong performance in its ongoing business in full year 2011. The group aims to release its preliminary results for 2010 on November 23.

In late May, Greencore reported first half pre-tax profits of €26.49m to the end of March 2010, against a pre-tax loss of €4.06m the same time last year.

Sales for the first half of the year rose by 2.1% to €434.5m when the company said the euro-sterling exchange rate did not significantly impact on its year on year comparisons.

Operating profits from continuing operations jumped by 43% to €27.7m.

In the first half the company disposed of its malt and water businesses for a total of €134.2m.

Since the sale of its malt business, Greencore’s convenience food businesses account for more than 90% of group operating profits, most of which is still earned in the British market, although the US is also becoming an important sales outlet for the group, which was the previous owner of now defunct Irish Sugar.

Shares in the group were up 1.5 cent, or by 1.31%, to €1.16 yesterday.