Greencore group operating profit up 10.6%

Greencore Group plc has reported a group operating profit of £91.7m for the year ending September 25, 2015.

This is up 10.6% on the corresponding period last year, the group has stated.

Group revenue is up 5.2% on the year to £1,340.3m and this is up 5.4% on a like-for-like basis.

The group’s Convenience Foods sector had a revenue of £1,290.2m, up 6.0% on a like-for-like basis, according to the group.

Greencore had a group operating margin of 6.8%, a 30 basis point increase.

According to the group, strong momentum, focus and investment behind the food to go strategy in the UK and US resulted  in 10.4% like-for-like revenue growth, well ahead of market performance

Commenting on the results, Patrick Coveney, Chief Executive Officer, said that Greencore has had another strong year and it’s clear food to go led strategy has continued to drive growth in both the UK and US markets.

We delivered 6% like for like revenue growth in Convenience Foods, 11% group operating profit growth and our fifth consecutive year of double-digit growth in adjusted earnings per share (EPS).

“We increased our investment in major capacity and capability improvement projects during the year, in each case underpinned by long-term customer relationships.

“Our strategy, momentum and pipeline of opportunities leave us well placed to deliver further progress in fiscal year (FY) 2016 and beyond,” he said.

Greencore outlook

According to Greencore, it has a clear strategy, strong positions in the growing food to go market and a clear pipeline of future opportunities.

The business is investing heavily in capacity and capability enhancement to meet growing consumer and customer demand for the years ahead, it states.

While the outlook for the UK grocery retail market remains uncertain, Greencore states that it is well placed to deliver further progress in FY16 and beyond.

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