Greencore announces 37.3% profits jump in 'breakthrough' year

Convenience food producer Greencore has reported revenue growth of 44.5% to €1.4bn in the year to the end of September.

Group operating profit was up 37.3% to €87m.

Greencore said the highlights of its year were the establishment of a food-to-go business in the US following the acquisitions of MarketFare Foods and Schau, and the completion of a supply agreement with Starbucks.

The company also began to see the benefits of 2011's acquisition of M&S food supplier Uniq, whose UK workforce makes sandwiches salads and desserts.

Company boss Patrick Coveney said: "2012 has been a breakthrough year for Greencore. The acquisition of Uniq has reshaped the performance, scale, capability and long-term prospects of our Group, with all elements of the targeted benefits now delivered.

"Despite increasingly challenging consumer conditions, little industry growth, and increasing levels of retailer competition, Greencore remains well positioned to deliver further progress in FY13 and beyond."

In a statement released to the stock exchange today, Greencore added: "While we have invested £152.2m in acquisitions during the period, our net debt: EBITDA, as calculated under our financing arrangements, is under 2.5 times, reflecting strong cash generation in the period as we continue to focus on de-leveraging from the peak position in October 2011."