Greencore profits up as firm emerges from “difficult period”
In the year ending 24 September, Irish food manufacturer Greencore registered a 4.8 per cent growth in revenue, going up to £1.3bn.
The growth – driven by returns in the food to go and convenience categories in the second half – helped the group emerge from a particularly difficult first half of the year, when it reported a loss before tax of £1.8m.
Reporting its end of year results, the company’s adjusted operating profit rocketed by 20 per cent to £39m, with an adjusted operating margin of 5.2 per cent in the second half of the year.
As a result of strategic partnerships and capital investment, Greencore had a free cash flow of £72.2m, and it reduced its net debt to £183.1m.
“Following a challenging first half in FY21, we made good progress in rebuilding revenues, cashflows and profitability in the second half and are confident of maintaining this positive trajectory in the year ahead, particularly in the seasonally important second half,” said Patrick Coveney, Greencore’s chief executive.
“With strong free cashflow and a significant reduction in leverage achieved in FY21, the Group enters the new financial year on a robust financial footing.
“Greencore has a strong position in the dynamic UK convenience food market and, with demand remaining strong in the early stages of FY22, has confidence in its medium-term prospects.”