Greencore reports strong trading

Irish-listed food group Greencore said trading in the first half of the year was strong as it reported a 15 per cent rise in earnings per share for the period.

The company, which operates in the US convenience food markets, said adjusted earnings per share for the six-month period would be 8.5 cent, 14.9 per cent up on the first half of last year.

Sales from continuing operations at the firm rose 2.1 per cent to €434.5 million, while operating profit was 43 per cent higher at €27.7 million.

Net debt was also down, with the group reducing it to €194.2 million from €332.6 million at the end of March 2009.

During the period the company completed the sale of its malt and water businesses.

Greencore said it had seen a strong performance from its convenience foods division, which now represents more than 90 per cent of its group sales, with sales from continuing operations up 6.1 per cent to €397 million and operating profit up 31.8 per cent to €25.9 million.

Sales in the US grew 27 per cent compared to the first half of 2009.

Chief executive Patrick Coveney said the company had a positive outlook for the rest of the year.

"In the last six months we have successfully completed the disposals of our malt and water businesses and in so doing have both tightened our portfolio and significantly strengthened our balance sheet," he said in a statement. "We have much still to do to deliver on the potential of our business, but we go forward with a clear strategy, a strong stable team and excellent performance momentum."