Strong sales and profit growth in its chilled and frozen foods business were the main factors in a solid first-half performance by foods group Greencore. The results from the chilled and frozen food division countered a fall in both sales and profits at the group's ingredients business.
The results reflect the continuing shift in the business towards consumer foods. For the first time, the chilled and frozen operations is the biggest component in Greencore's operations.
Overall, sales were up 45 per cent (up 5 per cent on a like-for-like basis) while operating profits were 40 per cent higher on €50.3 million. Pre-tax profits were up 32 per cent to €22.1 million.
Growth in the group's chilled pizza business in the UK was hindered by delays in bringing the new toppings plant on Deeside into production. This delay is costing Greencore £500,000 sterling (€785,300) a month but the Deeside plant is nearly completed and this will enable the closure of the plant in Bedford.
Sales at Greencore's ingredients business - made up of Irish Sugar and its malting operations in Ireland, the UK and Belgium - fell marginally to €211.3 million while operating profits were 7 per cent lower on €17.7 million. The fall in profits was attributed to the disruption to the beet campaign because of the dispute with the IFA, higher beet prices and substantially higher energy and insurance costs.
Two of these factors, however, will be non-recurring, according to Greencore, while Irish Sugar has been able to raise sugar prices for the first time in years from last April.
