Greencore Delivers “Challenging First Half” In FY18 Results
Greencore has delivered a “challenging first half,” according to its interim results for the 26 weeks ended 30 March 2018.
The manufacturer of convenience food in the UK and US outlined in a statement that profit growth was 'impacted in particular by previously announced challenges in the original part of the US business.'
“The first half of FY18 has been challenging for Greencore and its shareholders,” Patrick Coveney, chief executive officer, said.
“While we delivered strong revenue growth in both the UK and US, profit growth was impacted by the challenges experienced in the original part of Greencore’s US division.”
The company has said that it has "reviewed and refined its US strategy and organisation".
“As a result of the significant strategic, network and organisational measures that we have taken in order to address these challenges, we believe that our US business is now much better positioned to deliver an improved performance in the second half of the year and beyond,” Conveney added.
“We anticipate strong organic growth for the remainder of FY18”.
The group highlighted that it has normalised strategic investment activity in the division during H1 after a phase of increased spending in FY16 and FY17 to support growth in the division in the UK and Ireland.
The key remaining project is the refurbishment and extension of the Group’s largest ready meals facility in Warrington which progressed well in the period.
UK Cakes Sector Exit
Looking ahead, the group announced in the statement that continued optimisation of the UK portfolio with the disposal of its cakes and desserts business which together with the planned closure of the desserts manufacturing business announced in FY17, marks Greencore’s exit from the UK cakes and desserts sector.
© 2018 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click subscribe to sign up for the Checkout print edition.