FDBusiness.com

Benefiting from its acquisition of Peacock Foods in the US, Greencore, the UK and international manufacturer of convenience foods, has reported a 56.5% increase in revenue to £2.319 billion and a 37.4% rise in adjusted operating profit to £140.1 million for the year ended 29 September 2017, versus the 2016 financial year. Group pro forma revenue growth was 9.4%.

Adjusted operating margin was 6.0%, 90 basis points below the prior year, primarily due to the impact of the acquisition of Peacock Foods and the significant commercial investments in the UK. Peacock Foods represents Greencore’s largest ever acquisition, which was funded in part through a rights issue.

During the year, Greencore successfully enhanced its leadership position in the UK through strong organic growth, supported by a substantial investment and a rigorous cost control programme. The group strengthened its standing in the food to go category with several significant business wins and commercial launches, as well as extending contracts with core customers. Greencore has now completed a phase of network investment in Food to Go, and added further capacity through the acquisition of a facility at Heathrow. The group has also invested in its UK ready meals network, while rationalising its UK portfolio with the planned exit from the desserts manufacturing business in Evercreech. Greencore has also begun a process of streamlining its UK organisation to help underpin overall performance in the medium term.

Patrick Coveney, chief executive of Greencore.

“Greencore has been substantially transformed this year and the decisions made and work undertaken in FY17 have set us up very well for further progress,” says Patrick Coveney, chief executive of Greencore. “The acquisition of Peacock Foods and the significant UK network investments made to support large new business wins have reshaped our business. Group pro forma revenue growth was strong at 9.4% – driven in large part by 18.8% growth in UK Food to Go. We are pleased with the progress of the US integration to-date and with the development of our US commercial pipeline, as illustrated by a recently extended long term, strategic partnership with one of our largest and most important customers.”

He continues: “While we have delivered good financial and operating progress in the year, the transformation has not been without its challenges. However, we are confident that our strategy, portfolio, business model and momentum positions Greencore well to drive profitability, cash flows and returns in FY18 and beyond.”

Greencore employs approximately 16,000 people across 31 manufacturing facilities in the UK and the US.