Food group Greencore has reported pre-tax profits before exceptional items of €73m for the year to the end of September, an increase of 8% on the same period last year.
Sales were up 4% to €1.4 billion, while the company reduced its net debt by €43m to €387m. The final dividend of 7.58 cent, makes a total for the year of 12.63 cent, in line with last year.
Chief executive David Dilger said the group recovered from a difficult first half, which was caused by a sharp rise in the price of its raw materials. In the second half the company raised prices in its convenience food division and disposed of its loss-making bread business Rathbones.
Greencore said its convenience food division was well positioned for further growth, but sugar processors were facing increased competition and reform of the market in the EU, with cuts in sugar prices and quotas. The company also said its sugar and malt businesses were facing increased fuel costs. Greencore said it was 'evaluating every alternative strategy' to protect its future profitability in these areas.
Profits in the convenience foods business fell from €57m to €53.7m, as the raw material prices rose in the first half. Underlying profits in the ingredients and agribusiness division were up 4% to €46.6m.
The group recorded a net exceptional loss of €51.4m, mainly due to the sell-off of Rathbones.
Shares in the company closed 19 cent lower at €2.81 in Dublin this evening - a fall of 6%.
