Sandwich maker gives shareholders a taste of the profits after sale of US arm

Irish food company Greencore put a smile on the face of its shareholders this morning, posting a rise in profits and pledging to return cash to investors following the sale of its US arm.

Pre-tax profits at the sandwich, salad and sushi maker rose 13 per cent to £17.8m in the financial year to the end of September, while revenue rose 4.2 per cent to £1.5bn during the same time period.

The Dublin-based group, which employs more than 11,000 people, also revealed that it planned to return £509m to its shareholders after selling its US business for just over £1bn last month, and proposed a total dividend of 5.57p, rising 1.8 per cent from 5.47p last year.

Boss Patrick Coveney said that favourable consumer and retailer trends had helped to drive the firm’s core food business, as it transitions much of its ready meals portfolio to a fresher meal market.

The company’s food to go business (comprising sandwiches, sushi and salads), which accounts for some 60 per cent of full-year revenue, generated revenue growth of 10.8 per cent.

“Despite the short-term uncertainties of Brexit, our scale, depth and expertise in attractive and structurally growing food categories mean that we are confident in the future growth prospects for Greencore,” said Coveney.