Transformational Period For Greencore
Greencore Group, a leading manufacturer of convenience food in the UK and US, has reported a 46.1% increase in revenue to £1.01 billion for the 26 weeks ended 31 March 2017, reflecting the impact of acquisitions and strong underlying growth, particularly in the UK. Group EBITDA rose by 31.2% to £79.1 million while operating profit grew by 27.1% to £55.3 million. Group operating margin decreased by 80 basis points, due largely to the impact of the phasing of significant commercial launches in the UK.
Headquartered in Dublin, Greencore employs 16,000 people in 30 manufacturing facilities across the UK and the US. On average, it manufactures around 1.5 billion sandwiches and 140 million ready meals every year.
In December 2016, Greencore completed the acquisition of Peacock Foods, which has transformed its market and channel position in the US and created a strong platform for long‐term profitable growth. Following the acquisition of Peacock Foods, Greencore has simplified its reporting structure. The group now has two separate reporting segments – Convenience Foods UK & Ireland and Convenience Foods US.
Convenience Foods UK & Ireland incorporates Food to Go (ie sandwiches, sushi and salads), and other UK & Ireland businesses including Prepared Meals (ie ready meals, quiche, soups and sauces), the Grocery set of businesses (ie cooking sauces, Yorkshire Puddings, cakes and desserts) and the edible oils and molasses trading businesses (formerly known as the Ingredients & Property Division).
Convenience Foods US encompasses Greencore’s existing US business and the acquired Peacock Foods business (ie a wide range of fresh, frozen and ambient convenience food products – including sandwiches, meal kits and salads kits – and a customer base including CPG companies as well as convenience retail and food service leaders).
Patrick Coveney, chief executive of Greencore.
In the first half, Convenience Foods UK & Ireland generated revenue of £685.7 million, up 16.1% as reported and up 10.6% on a pro forma basis. Convenience Foods US achieved revenue of £324.6 million, up 220.8% as reported and up 2.5% on a pro forma basis.
Patrick Coveney, chief executive of Greencore, comments: “This has been a transformational period for Greencore following the acquisition and integration of Peacock Foods in the US. Against a backdrop of considerable change across the group, we are pleased to be reporting strong revenue and profit growth for the first half of the year. In the UK, we have delivered significant expansion and investment following recent new long-term business wins, as our Food to Go business continues to grow rapidly.”
He continues: “In the US, the addition of Peacock Foods has transformed our market and channel position and has given us a growth platform of real scale. The enhanced capabilities, product offerings, and customer relationships that have been added to the Group in a short space of time, combined with the strength of our underlying business, mean that we are confident of making further progress in FY17 and beyond.”
