Further Progress by Greencore
Despite the challenging trading environment and the impact of the horsemeat scandal on ready meals sales, Greencore, the UK and international convenience food processor, increased group operating profit by 8.1% to £76.5 million on revenue up 3% to £1.2 billion for the year ended 27 September 2013. Greencore’s strong operating and financial discipline helped to deliver a 30 bps improvement in group operating margin to 6.4%.
During the year, Greencore successfully completed the changes to its portfolio that were started in the 2012 financial year in order to form a business with clear scale and a balanced customer mix. Greencore’s US business has been transformed through a clear focus on food to go formats in small stores and it has rolled out supply from four of its six US facilities to Starbucks.
In the UK, the integrations of Uniq and International Cuisine were successfully completed. UK market conditions proved challenging with lower market growth in chilled food than in previous years, exacerbated by the impact of the horsemeat scandal on demand in the chilled ready meals market. However, sales performance improved in the fourth quarter with like for like revenue growth in the UK of 4.7%.
Patrick Coveney, chief executive of Greencore.
Having now completed the integration of recent acquisitions, Greencore is well placed to achieve further progress during 2014 as it continues to follow its ’food to go’ led strategy in both its UK and US businesses.
Patrick Coveney, chief executive of Greencore, comments: “Greencore had a good year in 2013, with clear commercial, strategic and organisational progress delivered across the group. We consolidated our portfolio after the extensive deal activity of the three preceding years, increased revenue at our US business by over 60% and realigned our resources behind a food to go led strategy. All this was achieved despite a weak UK consumer environment, limited growth in retail food markets, persistent input cost inflation and the negative impact of the horsemeat scandal.”
He adds: “Despite these challenges, we grew revenues, strengthened margins and delivered double digit growth in adjusted EPS. We enter the new financial year with good momentum in our businesses. We remain well positioned to deliver further progress in FY14 and beyond.”
