Greencore to focus on convenience foods after sugar exit

Food group Greencore has announced a jump of 14.3% in after-tax profits tax to €30.5m (pre-exceptionals) and said the company's future is now in convenience foods after this year's withdrawal from sugar processing.

The company's interim statement also shows a net exceptionals figure of €45.7m, due principally to Greencore's sugar processing exit.

Greencore has previously been predominantly an agri-business company but is aggressively building a new products portfolio - almost 40% of its products are less than one year old. Its products include a range of pre-prepared sandwiches, prepared meals and the WeightWatchers boxed meals range.

In chilled sauces, where Greencore leads with a 41% market share, its annual market growth is now 15%. In cakes, where the overall market grew at 6%, the company's two key segments - celebration cakes and Christmas cakes - had growth of 16% and 10% respectively.

Group boss David Dilger said: "These results represent a solid underlying performance against a background of a competitive convenience foods environment and EU sugar reform that has led us to exit sugar processing in Ireland.

"The future for Greencore now lies in convenience foods. We have high-performing businesses right across the range of our operations with nine of the 10 convenience foods businesses growing at or above market growth rates.

"Against this background, we are confident that we will deliver a good performance for the full year."

Convenience foods contributed 72% of group operating profits for the six months ended March 31 and saw a divisional operating profit growth of 2.2% to €30.3m.