Greencore has had a 'good first half to the year', with 'clear financial and operational progress' as it has extended its leadership position in key food to go categories in the UK.
The manufacturer of convenience food reported pro forma revenue growth of 5.4% in continuing operations, driven by 7.0% growth in food to go categories, according to its interim results for the 26 weeks ending 29 March 2019.
"We have reshaped and strengthened our capital structure, and now have a robust foundation from which to pursue a range of new food to go product and channel opportunities," Patrick Coveney, chief executive officer, Greencore said.
US Business Disposal
On the 25 of November, 2018 Greencore said that it completed the sale of its entire US business Hearthside Food Solutions LLC.
'A profit on disposal of £56.7 million was reported in the first half of 2019 to reflect this transaction', the group highlighted in a statement.
Following the disposal, the group fully reset its capital structure.
The group returned £509 million of capital to shareholders in the form of a tender offer, executed on 31 January 2019.
Coveney said that while recognising that trading conditions in the wider UK grocery sector remain challenging, the growth outlook for our business continues to be encouraging, underpinned by favourable consumer trends and ongoing investment by our customers.
"As a result, we believe that our market positioning, capability set, customer relationships, well invested asset network and proven economic model will deliver strong future growth, cash generation and returns.” Coveney added.
© 2019 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click sign-up to subscribe to Checkout.