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Operating profits for the first six months of Greencore’s 2017 financial year to the end of March have surged more than 27% to £55.3m.
The increase in profit comes despite operating margins narrowing by 80 basis points to 5.5%, which the group attributed to the impact of “significant” commercial launches in the UK.
Group revenue for the first half of the financial year increased more than 46% to just over £1bn, with Greencore now reporting on two new divisions to reflect the acquisition of Peacock Foods into the wider business.
The first new division is Convenience Foods US which reported sales close to £325m and operating profits of £8.5m.
Greencore’s business on this side of the Atlantic has been renamed Convenience Foods UK & Ireland and it saw revenues in the first half of the year grow by 16% to £686m. Operating profits in the division were flat at £47m as margins shrunk by 110 basis points to 6.8%.
Transformational period
Commenting on the results, Greencore chief executive Patrick Coveney described the last six months as a “transformational period” for the group following the acquisition and integration of Peacock Foods.
“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,” said Coveney.
“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. 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,” he said.
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