Irish food group Greencore expects strong growth in 2008 despite a slowdown in consumption and rising food costs, it said today.
But the company warned that if sterling remained in the 0.74 to 0.75 range versus the euro, it would cut its pre-tax profit by about €6 million. Greencore expects to earn 80 per cent of its operating profit in sterling.
Greencore, the world's biggest maker of prepared sandwiches, said food inflation had become a key challenge, but it has managed to pass most extra costs on to consumers.
The Dublin-based company said demand for its products had held up in the first quarter, although there was evidence of a limited slowdown in consumption in January.
Greencore also said it would book an exceptional profit of €15 million in its interim accounts after the upward revision of EU restructuring aid it receives.
