Foods group Greencore said pretax profit in the first half to March 28th, 2003, rose to €15.8 million from €4.9 million a year earlier after it raised like-for-like sales in all divisions.
Greencore also achieved operating margin growth across all three divisions.
Profit before tax, exceptionals and goodwill amortisation was up 9 per cent to €31.1 million. Total turnover was €743.8 million, down from €936.5 million a year earlier.
The group cut net debt to €66.1 million from €497.1 million.
The board said the benefits of the extensive restructuring that the group has undertaken over the past two years are clearly evident from these results.
Turning to the dividend, the board said it plans to continue its policy for the time being of maintaining payments in order to continue to reduce the indebtedness assumed as a result of the acquisition of Hazlewood Foods in 2001.
The board, however, also said it wishes to rebalance the weighting between the interim and final dividend payments to reflect more closely the relative profitability of the first half and second half of the financial year. Aninterim dividend of 5.05 cents per share will therefore be paid.
Greencore's Chilled and Frozen division performed very strongly in the first six months with like-for-like sales growth of 3 per cent, whilst operating margins from continuing operations increased from 5.1 per cent to 6 per cent, resulting in a 12 per cent rise in continuing operating profit from €16.3 million to €18.2 million.
On a constant currency basis, operating profit from continuing operations grew by 19 per cent.
AFP