Food group Greencore has reported pre-tax profits of €75.1m for the year to September 28, 2007, up 32% from the same time last year as the company reported a difficult second half.
Revenues rose to €1.267 billion from €1.177 billion the same time last year. The company's board has recommended a final dividend of 8.21 cent. If approved, this will result in a total dividend of 13.26 cent, an increase of 5% on last year's level of 12.63 cent.
Last August Greencore completed the sale of its 50% stake in Odlum Group to Origin Enterprises. It said it recorded an exceptional profit of €24.2m on the deal.
Greencore said the difficult conditions of the last six months impacted its convenience foods performance but added that conditions for recovery in place. The division accounted for more than 70% of the group's turnover and operating profits in 2007.
The division's operating profits fell by 7% to €64.4m with a 16% decline seen in the last six months. Turnover at the division grew by 4% to €933.1m with a 1% decline in the second half of the year.
Greencore said that unseasonal weather conditions hit its summer-weighted categories such as sandwiches, mineral water and quiche. Raw material and packaging prices also increased considerably during the year, with rises in bread, flour, dairy, eggs, cooked meats, onions, glass and corrugated paper.
After reporting progress in building its chilled food businesses in the Netherlands and Ireland, Greencore said it is now looking to make a 'modest' acquisition in the US as a means of getting an entry route into this 'promising market'.
The group's Ingredients & Related Property division reported operating profits of €26.6m, up a massive 372% on the 2006 level of €5.6m - driven mainly by the strong recovery of Greencore's malt business as global demand for beer and whiskey grows.
'Global markets now have a better balance between demand and supply, and the UK market in particular has strengthened as a result,' Greencore said in today's results statement. Turnover at the division rose by 21% to €334m.
During the year Greencore said that it had made 'excellent' progress in enhancing the zoning and planning statues at its four main properties - Mallow (396 acres), Carlow (333 acres), Athy (40 acres) and Littlehampton in the UK (123 acres)
'Greencore had made great progress in 2007 with significant growth in operating profits, profit before tax and continuing EPS', commented Group CEO David Dilger.
'Convenience Foods is central to group strategy and performance, and while we had a tough second half this year, due principally to external factors, our market positions and executional skills remain very strong,' he added.
'In common with the rest of the industry, we are working hard to offset the impact of high levels of raw material inflation. Progress in achieving price increases is encouraging,' he said.
Greencore shares closed down 21 cent at €4.18 in Dublin.
