Leaner Greencore reports 40% rise in profits

Food company Greencore today reported a 40 per cent increase in operating profit to €50.3 million

Food company Greencore today reported a 40 per cent increase in operating profit to €50.3 million. The results include a contribution from the retained Hazlewood Foods business which the company acquired last year.

Greencore said total proceeds from its disposal programme following the Hazlewood acquisition have exceeded expectations.

In the first six months of the year, five additional businesses were sold, as well as 50 per cent of the flour milling business, Odlums.

Total disposals amounted to €53 million and a further €45 million has been realised since the half year end from additional business and property sales.

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In total, eighteen businesses have now been sold since the acquisition of Hazlewood, with proceeds of some € 198 million generated, and a further four closed.

Looking ahead Greencore said it expects a strong performance from its streamlined frozen foods and bakery business. It added that a specific focus in the second half of the year will be on continuing to reduce indebtedness, while driving improvements at the cakes, pizza and bakery businesses.