Food group Greencore has described the performance of its convenience foods division in the four months to July 31 as 'solid'.
In a trading statement, the company said the value of underlying sales had fallen 7.5% from a year earlier to €284m. But when the effect of a weaker sterling was stripped out, sales were just over 7% ahead, helped by price increases.
Greencore said it still expected underlying sales growth in its convenience foods business for the full second half, despite a marked deterioration in UK consumer sentiment. It said its US business had made a 'very encouraging' start since it bought Home Made Brand Foods at the end of April.
The company said its ingredients and property businesses continued to trade well. It added that it expected earnings per share for the full year to be in line with market expectations of 22.8 to 25 cent.
Greencore will take an exceptional charge of €10m in the second half as a result of a reduction in its ready meals and frozen desserts capacity. The output of two UK facilities is being transferred into bigger plants.
The group earlier this year appointed KPMG to review financial controls all of its businesses. This followed news in June that an internal audit had found that significant costs were concealed at its Scottish mineral water division. Greencore said no issues had been uncovered after a review of 20 sites representing 80% of its sales.
The group has now appointed KPMG as its auditors, replacing PricewaterhouseCoopers.
Shares in the company closed down 20 cent at €2.10 in Dublin this evening.
