Greencore records 32% rise in profits

Greencore, which plans to develop the 400 acre former sugar factory in Mallow, Co Cork, today reported a 32% hike in pre-tax profits of €75.1m for the year to September 28, 2007.

Chief executive David Dilger reported the good set of results were made on a 4% rise in turnover to €933.1m with a 1% decline in the second half of year.

“With a strong convenience foods business, a recovering malt franchise, nearly 1,000 acres of development property and a stronger balance sheet, the group is confident in its ability to deliver substantial value to shareholders in the coming years,” Mr Dilger said.

Last January, Greencore announced proposals for rezoning and development of the 398 acres at the former Mallow sugar plant. The €500m development includes business, tourism and residential elements and a big focus on leisure and amenity.

Europe’s largest sandwich and Christmas cake maker also want to develop their landbanks at the former sugar plant in Carlow and sites at Athy and at Littlehampton in West Sussex. Greencore produces 200 million sandwiches per annum at its factories in the UK.

“We’ve had great support form our local communities as we attempt to add value to the towns and our own property portfolio. We’ve made great progress on all three sites and at Littlehampton in the UK as well,” Mr Dilger said.

At the moment, Greencore has €1.9bn of land ready for development.

Mr Dilger did not have much to say about property developer Liam Carroll, who has bought a substantial stake in Greencore.

Although the convenience foods division performed well in the first half of the year with revenue and operating profits up 8% and 5% respectively, performance in the critical second half period was disappointing.

Profit declined 16% primarily due to the impact of the unseasonal summer weather and strong raw material cost inflation in the final quarter.

Article courtesy of the Evening Echo newspaper.