Ingredients business boosts Greencore performance

Convenience food group Greencore has seen a 22% increase in operating profit from €74.6m to €91m in the first full year since its exit from the sugar-processing business, the company announced today.

The company announced a 50% increase in adjusted earnings per share (from 19.9c to 29.8c).

Greencore blamed the bad summer weather and inflation in raw material prices for a 16% slump in profits in its convenience food division in the second half of the year. On a full-year basis, turnover rose 4% to €933.1m and operating profit fell 7% to €64.4m.

Substantial growth in Greencore's ingredients business, particularly in malt, did something to off-set the downturn in the convenience foods division in the year, increasing by 372% over 2006 figures.

Greencore also said today that it had made "excellent progress" on the zoning and planning aspects of its four major property assets, including the two former sugar facilities at Mallow and Carlow (the other two assets are at Athy and Littlehampton in England).

The company is also looking forward to a €83.4m cash injection at the end of this month, thanks to its share of 87.3% of the available EU restructuring aid after the closure of its sugar-processing business.