Food group Greencore said its pre-tax profits for the six months to March 26 were down 3% to €30.1m. Earnings per share were down 5% to 13.4 cent. The company reported a 4% overall like-for-like sales growth, with 6% growth in the convenience food division.
Greencore said that price increases have been achieved to offset all of the significant raw material inflation in the UK convenience food categories, although the time lag has impacted the six month results.
'The group has made good progress in the first six months of the financial year and has capably dealt with the key cost challenges faced by the entire sector,' commented Greencore chairman David Dilger. 'Results for the second half of the financial year will reflect the benefit of the price increases and cost savings achieved to date,' he added.
He also said that the interest charge in the second half of the year is expected to be much lower below the figure for the same time last year. 'Overall, the group remains confident of a successful outcome for the year'.
Like for like sales in the first half of the year in the convenience food division grew by 6%, with a strong performance in Greencore's UK chilled food activities.
Greeecore shares closed up four cent to €3 in Dublin this evening.
