Greencore delivers profits of €67.8 million

Food company Greencore today reported a 7 per cent rise in pre tax profits of before tax to €67

Food company Greencore today reported a 7 per cent rise in pre tax profits of before tax to €67.8 million and said operating margin improved in all three divisions.

The former Irish sugar company has undergone a major restructuring to switch from being a commodity-based supplier to a being a major player in the convenience food market. As a result of a acquisitions in Britain most notably Hazlewood Foods, Greencore is now the world's largest sandwich manufacturer and has made major inroads in the ready-meals market.

Mr David Dilger, Greencore's chief executive, said the results demonstrate the potential of this business following the successful integration of Hazlewood Foods.

"Greencore has been transformed over the last number of years and, as a result, is well placed to achieve continued growth. We look forward to the future with confidence," Mr Dilger said.

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Headline earnings per share grew by 4 per cent to 30.6c, notwithstanding an increase in the effective tax charge from 11 per cent to 13 per cent. Underlying headline earnings per share, which calculates continuing earnings at constant exchange rates, increased by 19 per cent over the comparative period.

Greencore kept its dividend unchanged as part of its policy to reduce debt resulting from acquisitions as soon as possible. The company will pay a final dividend of 7.58 cent per share making a total for the year of 12.63c, which is in line with last year's level.