Food group Greencore has warned that its first half earnings per share are expected to be a little below the comparable reported figure for the first half of last year.
In a pre-close trading statement today, the company said that progress continues to be made in reshaping and refocusing the group following the purchase of Hazlewood Foods early last year.
Since last February, three more businesses have been sold and consent has been obtained from the Department of Enterprise, Trade and Employment for IAWS to increase its stake in Greencore's flour milling business, Odlums, to 50%.
The company said that these transactions will generate €43 million, which will be used to pay down debt and will result in total proceeds of €151 million from the group's disposal programme.
Today's statement says that the group remains on track to achieve its target of €190 million by this May. It added that the group remains confident that it will reach it pre acquisition synergy target of £7 million sterling in the 2002-2003 financial year.
Trading is in line with expectations in the company's Ingredients business, having taken into account the reduction of profits in sugar. The Chilled and Frozen sector continues to perform strongly, but in the Ambient Grocery sector, the bread market continues to be difficult.
In Agribusiness, trading has been satisfactory in the context of a late start to the key spring selling season because of adverse weather conditions.
'We have made substantial progress with our plans to refocus the business of the group and to change the shape of our portfolio, concentrating on our businesses which have strong market positions and which are showing good growth potential,' David Dilger, Group Chief Executive, said.
He said the company expect to make further announcements in this area in the coming weeks and added that appropriate management action is being taken in the small number of Greencore's businesses which are underperforming.
'We remain confident that a stronger, higher growth Greencore will emerge from this transformation process,' he concluded.
Shares in Greencore were unchanged at €3.19 in Dublin this evening.
