Food group Greencore has reported pre-tax profits of €26.49m for the six months to the end of March 2010. This compares with a pre-tax loss of €4.06m the same time last year.
Revenues for the first half of the year rose by 2.1% to €434.5m and the company said the euro-sterling exchange rate did not significantly impact on its year on year comparisons. Operating profits from continuing operations jumped by 43% to €27.7m.
During the six-month period, the company disposed of its malt and water businesses for a total amount of €134.2m. Following the sale of its malt business, Greencore's convenience food business now accounts for more than 90% of group operating profits.
Greencore said that sales from continuing operations in this division rose by 6.1% to €397m as it benefited from both positive consumer trends, with more food consumed at home, and an improved capacity environment in the UK.
Greencore said that the second half of the year has started well and it remains on track to deliver good operating profit growth in convenience foods for the full fiscal year.
The company has proposed an interim dividend of three cent per share.
'Our business is performing very strongly with operating profits up 43%, EPS up 15%, debt down by 42% and a positive outlook for the rest of the year,' commented Greencore's CEO Patrick Coveney.
Greencore shares closed down 2.8% at €1.22 in Dublin.
