Dublin / IE. (gg) Greencore Group PLC, a leading international convenience food business, some days ago issued its preliminary unaudited results for the year ended 30 September 2016.
Financial Highlights
- Group revenue of 1’481.9 million GBP, up 10.6 percent (as reported) and up 5.9 percent on a like-for-like (1) basis
- Convenience Foods revenue of 1’435.2 million GBP, up 6.6 percent on a like-for-like (1) basis
- Group Ebitda (2) up 13.9 percent to 138.4 million GBP
- Group Operating Profit (2) up 11.2 percent to 102.0 million GBP
- Group Operating Margin (2) of 6.9 percent, a 10 bps increase
- Growth in adjusted EPS (3) of 8.3 percent to 19.5p
- Proposed final dividend of 4.10 pence per share, giving a total dividend of 6.65 pence per share, up 8.1 percent
- Net debt of 331.8 million GBP with net debt:Ebitda leverage as measured under financing agreements of 2.4 times
Strategic Developments
- Continued strong momentum across UK and US food to go activity with 10.5 percent like-for-like revenue growth, well ahead of market performance
- Phase two of the Northampton expansion project completed on time with commissioning well under way. New sushi facility at Northampton also constructed and now being commissioned
- Further capacity investments made in H2 16 in UK food to go capacity in order to support strong growth pipeline
- Acquisition of The Sandwich Factory Holdings Limited in July 2016
- Rhode Island facility fully commissioned and Seattle build completed on time and to budget
- We have today also announced the proposed transformational acquisition of Peacock Foods which will accelerate our vision to become a fast-growing, international convenience food leader and establish a scaled and profitable platform for future growth in the US
Summary Financial Performance
| FY-2016 | FY-2015 | Change | Change | |
| million GBP | million GBP | (as reported) | (like-for-like) (1) | |
| Group revenue | 1’481.9 | 1’340.3 | +10.6% | +5.9% |
| Group Operating Profit (2) | 102.0 | 91.7 | +11.2% | |
| Group Operating Margin (2) | 6.9% | 6.8% | +10 bps | |
| Adjusted PBT (3) | 85.9 | 78.0 | +10.1% | |
| Adjusted EPS (pence) (3) | 19.5 | 18.0 | +8.3% | |
| Proposed dividend per share (pence) | 6.65 | 6.15 | +8.1% | |
| Net debt | 331.8 | 265.5 | +66.3 million GBP | |
| Return on Invested Capital (ROIC) | 13.8% | 14.1% | -30 bps | |
| Convenience Foods Division | ||||
| Revenue | 1’435.2 | 1’290.2 | +11.2% | +6.6% |
| Operating Profit (2) | 100.0 | 89.6 | +11.6% | |
| Operating Margin (2) | 7.0% | 6.9% | +10 bps |
- References to like-for-like (LFL) revenue growth exclude revenue from The Sandwich Factory from acquisition in July 2016 and are expressed in constant currency. FY16 was a 53 week accounting period. For comparative purposes, revenue for the week of 24-30 September 2016 has also been excluded.
- Ebitda, Operating Profit and Operating Margin are stated before exceptional items and acquisition related amortisation. These are non-IFRS measures; and are reconciled to IFRS measures in Note 10.
- Adjusted PBT and adjusted earnings measures are stated before exceptional items, pension finance items, amortisation of acquisition related intangibles, FX on inter-company and certain external balances and the movement in the fair value of all derivative financial instruments and related debt adjustments and are reconciled to IFRS measures in Note 10.
- Market / category growth rates are based on Nielsen data for the 52 weeks to 2016-10-01 or Kantar data for the 52 weeks to 2016-10-02.
Commenting on the results, Patrick Coveney, Chief Executive Officer, said: «This has been another year of strong performance for Greencore, and these results should be seen as a clear indication that our strategy of focusing on the UK and US Convenience Foods markets is continuing to work well. In the UK, we have delivered substantial like-for-like growth against the backdrop of a challenging retail market and an uncertain economic environment, and in the US we now have a business that is primed to deliver sustainable, profitable growth. Given the underlying commercial momentum across the Group, our strong market positions, the transformational acquisition of Peacock Foods in the US that we have announced separately today, and our recent new business wins, we are confident about Greencore’s future prospects».
