Food group Greencore today reported a 32% rise in core half-year operating profits and said it was making good progress with its recently acquired Hazlewood ready-made-meals business.
Greencore said its operating profits, before goodwill amortisation and exceptional items, stood at 46.7 million euros from 35.3 million. Sales were up by 73.5% from 420 million euro to 729 million euro.
Adjusted earnings per share were 14.2 cents from 15 cents in the previous period. An interim dividend of £3.45 is to be paid which is in line with last year's interim payment.
Commenting on the results, Chief Executive David Dilger said :'We have made a lot of progress in managing the integration of Hazlewood Foods in the short period since the acquisition. We remain on schedule to realise the synergies, cost savings and debt reduction targets we identified before we acquired the company'.
In a pre-closed period statement in April, Greencore had warned that the outbreak of foot and mouth disease was making trading conditions difficult in some sectors, but today the company said it seemed to be over the worse effects of the crisis.
'Foot and mouth affected every single food manufacturer in the UK, and to a lesser extent the Republic of Ireland', Dilger told RTE Business news this morning. He said the total impact of FMD on the group's full year profits would be around £1 million.
Greencore bought the UK-based Hazlewood Foods last November for £258 million.
'The enlarged group has strong market positions in fast growing sectors of the UK and continental European convenience food markets,' Mr Dilger added. 'While much remains to be done during the next year to maximise the benefits and opportunities available to Greencore, we are confident that excellent value will be generated for customers and shareholders'.
Greencore shares had fallen by two cents to 2.50 euros at 14.20 in Dublin on the back of today's interims.
