Greencore directors vigorously defended their performance amid shareholder protests over the food group's plummeting market valuation at its annual general meeting yesterday.
Outgoing chairman Mr Tony Barry cited a 6 per cent increase in year-on-year profits fuelled in part through the acquisition of British ready-meals producer Hazlewood.
The board also rejected claims that the company's two pension funds were amalgamated to shore up deficits or that the merger was pushed through despite misgivings from the Irish Pensions Board.
Many shareholders were unconvinced and questioned the wisdom of a 37 per cent rise in aggregate director pay.
Suggestions from the floor that a 14 per cent slump in share value in the year to January 2nd exposed flaws in management were dismissed by Mr Barry who pointed to a 16 per cent fall in the ISEQ over the same period. Greencore had reinvented itself as a dynamic food producer and, with convenience products accounting for 70 per cent of income, had shed its exclusive and debilitating reliance on ingredient sales.
But it was the dispute over the merger of Greencore's two pension funds that prompted the most rancour.
Pensioners picketing the meeting said the board had drained the staff fund to compensate for shortfalls in a separate reserve for production workers.
Greencore directors poured scorn on the allegation, saying the funds were amalgamated to boost efficiencies, a move that strengthened shareholder value.
Requests for a breakdown of profits from individual divisions were declined by the board, which insisted that doing so would compromise competitiveness .
Turnover increased 23 per cent to €1,585 million in the 12 months to September 2002, leading to a 14 per cent surge in operation profits to €102 million and an 8 per cent increase in year-on-year profits.
Disposals - including the sale of Erin Foods - exceeded targets at €130 million and lowered net debt 22 per cent to €563 million.
However, growth did not translate into improved shareholder returns with headline earnings contracting 3 per cent to 29.4 per cent.
Dividends per share remained static at 12.63 cents.
Chilled and frozen foods performed best, copperfastening Greencore's standing as one of the major players in the fast expanding British convenience market.
The ambient grocery division fared less well due to widespread below-cost spending in the UK bread sector, the board reported.
Irish sugar processing produced 198,200 tonnes, some 6,000 tonnes ahead of the reduced quota.
A sugar beet shortage caused by poor weather offset a satisfactory operation performance, according to Mr Dunne.
He is succeeded as chairman by Mr Ned Sullivan.
