Profits at sandwich-maker Greencore surge to €33.1m

Chief Executive of Greencore Dalton Philips

Profits at Irish sandwich and snack-maker Greencore have surged during the first half of its financial year following the exit of low margin businesses.

According to the company’s latest financial update, Greencore revenue grew on a like-for-like basis, of 4.1% in the six months to March 29.

Overall revenue declined by 6.4% but this reflects the company’s disposal of Trilby Trading - a producer of vegetable oil in September of last year.

The company’s adjusted operating profit for this period stood at £28.3m (€33.1m) - an increase of 139.8% compared to the same period during the previous year.

Greencore is expecting its full-year adjusted operating profit to be between £86-88m.

The company said that it is aiming to return a further £50m to shareholders over next 12 months, commencing with a share buyback of up to £30m. If the business continues to trade as expected the Board intends to declare a dividend for the year to September 2024.

Chief executive of Greencore Dalton Philips said the company has “delivered excellent progress” and continued to outperform the market in a “difficult consumer spending environment”.

“We have exited low margin business and are undertaking a range of actions to increase the returns profile of each element of the portfolio.

Greencore is one of the largest convenience food producers in Ireland and the UK.