Greencore profits and revenue rise amid good underlying UK growth
By Michele Maatouk
Date: Tuesday 04 Dec 2018
(Sharecast News) - Convenience food manufacturer Greencore posted a rise in full-year profit and revenue on Tuesday, with good underlying growth in the UK.
In the year to 28 September, pre-tax profit was up 12.7% to £17.8m on revenue of £1.5bn, up 4.2% from the same period a year ago. The company said it delivered good underlying growth in the UK, with favourable consumer and retailer trends helping to drive the core food to go business, which generated revenue growth of 10.8% on a pro forma basis.
Full-year adjusted earnings per share came in at 15.1p, in line with previous guidance of between 14.7p and 15.7p and adjusted operating profit was up 1.7% to £104.6m.
Both operating profit and revenue were light of consensus expectations of £152.5m and £2.5bn, respectively.
Following the sale of its US business, Greencore said it is committed to the prompt return of £509m of the deal proceeds to shareholders. After a consultation exercise with shareholders, it now plans to implement the capital return via a tend offer to all shareholders. To the extent that the full capital return is not effected through the tender offer, the company will return any remaining proceeds shortly thereafter, most likely in the form of a special dividend.
Chief executive officer Patrick Coveney said: "After the financial year-end, we took the decision to sell our US business having received a compelling offer for it. We will now focus all of our attention and resources on the significant growth opportunities that we see in the UK, both organic and inorganic.
"Despite the short-term uncertainties of Brexit, our scale, depth and expertise in attractive and structurally growing food categories mean that we are confident in the future growth prospects for Greencore."
Greencore said it entered FY19 with a stronger and leaner business in the UK following the refinement of its portfolio and the implementation of an efficiency programme. It expects continued revenue growth in its key convenience food categories, with adjusted operating profit driven by this revenue growth, improved operational performance and a planned review of central overheads.
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