Profits rise for Greencore

Greencore Group plc, food manufacturer and supplier of convenience foods has announced a full year earnings rise of 7% led by growth in its chilled foods division.

Pre-tax profit before exceptionals increased to €67.8m in the year to September, with sales falling by 6% to €1.45bn, reflecting a number of disposals by the company in the past year.

Since acquiring Hazlewood Foods in 2001, the company changed the focus of its business from mature commodity products to fast growing consumer foods, and operating profits in this area -the chilled and frozen division- rose 13% to €40.2m.

Greencore has not raised its dividend as part of its debt reduction plan following the €440m acquisition of Hazlewood.

Operating profit rose 4% at Ingredients and Agribusiness and rose 5% at the Ambient Grocery division, which includes bottled water and sauces. Greencore is a leading supplier of retail brand bottled water in Britain.

Chief executive David Dilger said that Greencore has "successfully addressed the challenges" presented by the Hazlewood acquisition and is now well placed to achieve continued growth in the future.

It was also announced this morning that the company has appointed chief executive of Jurys Doyle Hotel Group, Pat McCann, as a non-executive director.