Irish food group Greencore today said full year earnings increased 7%, led by growth in its chilled foods division.
Pre-tax profit before exceptionals rose 7% to €67.8m in the year to September 26, as sales dropped 6% to €1.45bn, reflecting a number of disposals in the past year. On a like-for-like basis, operating profit increased by 7% and sales were up 1% .
Operating profit rose 4% at ingredients and agribusiness and rose 5% at the ambient grocery division, where additional trade was sourced from mineral water and sauces.
Operating profits at the chilled and frozen division rose 13% to €40.2m, with the sandwich business benefiting from new product introductions and contracts. The world's largest sandwich manufacturer said the division's earnings growth was further boosted by improved efficiencies and cost reduction initiatives.Greencore did not raise its dividend, which was part of its debt reduction plan following its €440m acquisition of UK group Hazlewood in 2001. The company reduced net debt by €133m to €430m.
Commenting on the results, Greencore chief executive, David Dilger said: 'These are strong results, with underlying EPS growth of 19%. They demonstrate the potential of this business following the successful integration of Hazlewood Foods'.
Greencore also announced today that Pat McCann, CEO of Jurys Doyle hotel has been co-opted to the board of directors as a non-executive director.
