Greencore operating profit grows 1.7pc as company focuses on core UK market
Operating profit at Greencore's continuing operations grew 1.7pc in the last year as the company said its rise in revenue has it well positioned to further grow its core UK market.
According to the food manufacturer, revenue from continuing operations increased by 4.2pc to £1,498.5m as adjusted operating profit rose by 1.7pc to £104.6m.
This includes central costs previously allocated to discontinued operations; Greencore completed the sale of its entire US operation for $1.07bn (€943m) to Hearthside last month.
Activities in Greencore's food to go verticals accounted for over 60pc of revenue from continuing operations in the full year results. Reported revenue growth in these categories was 11.1pc, excluding the impact of the acquisition of the Heathrow sandwich facility acquisition.
The company cited a strong performance against the backdrop of a UK trading environment which included retail competition, cost inflation, and operational disruption from adverse weather.
Greencore said it has been engaged in Brexit planning since the result of the referendum was first announced and is continuing to monitor the potential implications of Brexit on its business, particularly in the areas of volume, material sourcing and labour availability.
CEO Patrick Coveney said that company favourable consumer and retailer trends helped drive the core food to go business in the UK.
"After the financial year-end, we took the decision to sell our US business having received a compelling offer for it. We will now focus all of our attention and resources on the significant growth opportunities that we see in the UK, both organic and inorganic," he said.
The company said it also planned to return £509m of capital to shareholders by way of tender offer.