LONDON (ShareCast) - (ShareCast News) - Greencore posted a 56.5% rise in group revenue for the year to on Tuesday, to £2.32bn, while it adjusted EBITDA was 37.1% higher at £189.7m.
The FTSE 250 firm said its adjusted operating profit for the 12 months to 29 September was 37.4% higher at £140.1m, while its adjusted operating margin fell 90 basis points to 6%.

Adjusted profit before tax was ahead 35.9% higher at £116.7m, although adjusted earnings per share were off 3.8% at 15.4p.

The board kept the proposed dividend per share steady at 5.47p.

On a statutory basis, the company's profit before tax fell 73.4% to £12.4m, and its basic earnings per share were down 80% to 1.9p.

Greencore's operating cash flow rose £3.9m during the year to £117.8m, while its net debt grew £187.4m to £519.2m, making for a net debt-to-EBITDA ratio of 2.4x, in line with last year.

Its return on invested capital fell 160 basis points to 12.2%.

"Greencore has been substantially transformed this year and the decisions made and work undertaken in FY17 have set us up very well for further progress," said chief executive Patrick Coveney.

"The acquisition of Peacock Foods and the significant UK network investments made to support large new business wins have reshaped our business.

"Group pro forma revenue growth was strong at 9.4% - driven in large part by 18.8% growth in UK food to go."

On the operational front, Greencore completed the acquisition of Peacock Foods in the US during the year - its largest ever acquisition, funded in part through a rights issue.

The board said the company also enhanced its leadership position in the UK through "strong" organic growth, supported by a substantial investment and "rigorous" cost management programme.

It said its operating leverage was impacted by challenges associated with delivering the "significant" change and transformation programme, with considerable investment and restructuring charges also incurred.

Overall investment and change in the year positioned the group to drive profitable growth and returns in a dynamic marketplace, the board added.

"We are pleased with the progress of the US integration to-date and with the development of our US commercial pipeline, as illustrated by a recently extended long term, strategic partnership with one of our largest and most important customers," Patrick Coveney added.

"While we have delivered good financial and operating progress in the year, the transformation has not been without its challenges.

"However, we are confident that our strategy, portfolio, business model and momentum positions Greencore well to drive profitability, cash flows and returns in FY18 and beyond."

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE