Dublin / IR. (gg) Greencore Group PLC, a leading international convenience food producer, issues its results for the year ended 28 September 2012. Commenting on the results, Patrick Coveney, Chief Executive Officer, said:
«2012 has been a breakthrough year for Greencore. The acquisition of Uniq has reshaped the performance, scale, capability and long-term prospects of our Group, with all elements of the targeted benefits now delivered. More broadly, our strategy, enlarged portfolio and team are working well as we continue to build out industry leading convenience food businesses in the UK and increasingly in the US. The Group delivered revenue growth of 45 percent, with like-for-like Convenience Foods revenues up 7,4 percent despite challenging market conditions. Operating profits, adjusted earnings and EPS were up 37 percent, 71 percent and 22 percent respectively and strong after tax cash flows have reduced leverage to below 2,5 times, even after acquisition activity. Despite increasingly challenging consumer conditions, little industry growth and increasing levels of retailer competition, Greencore remains well positioned to deliver further progress in FY 2013 and beyond».
Highlights in FY 2012
This is only a summary. The complete and detailed news release «Full Year Results Statement – Strong Performance Despite Challenging Market Conditions» is available on Greencore´s web server.
- Growth of 44,5 percent in reported revenue to 1’161,9 million GBP, due to acquisition activity and business momentum;
- Revenue from Convenience Foods continuing activity of 1’036,9 million GBP, up by 11,2 percent or 7,4 percent excluding the impact of acquisitions in the year, despite challenging market conditions;
- Group operating profit2 up 37,3 percent to 70,7 million GBP, reflecting the acquisition activity and business momentum;
- Group operating margin of 6,1 percent, an expected 30 bps decline resulting from the incorporation of Uniq;
- Adjusted earnings3 of 49,2 million GBP, up 70,9 percent and adjusted EPS3 of 12,8p, up 21,9 percent;
- Net Debt of 258,0 million GBP, resulting in a net debt: Ebitda leverage of under 2,5 times on the basis of calculation used under our financing arrangements;
- Proposed final dividend of 2,5 pence per share, giving a total dividend of 4,25 pence per share;
- Uniq integrated with delivery in line with our business case;
- Established a scale food to go focused business in the US following the acquisitions of MarketFare Foods LLC and H.C. Schau + Son Inc. and signed a supply agreement with Starbucks
Cakes and Desserts, including Foodservice Desserts
The ambient cake market grew by 2,7 percent in value terms with celebration cake, our largest sub-category, ahead by 4,5 percent. Our Cakes and Desserts activity delivered strong growth of 13,3 percent with growth in all major customers and the introduction of a celebration cakes range in another major retailer. While there was some modest input cost recovery, returns within the category continue to lag the rest of the Group due to unrecovered inflation over a number of years and industry over capacity. The Foodservice desserts business delivered modest growth despite the difficult trading environment exacerbated in foodservice by the poor summer weather.
Outlook
Following the extensive reshaping of its portfolio of businesses over the last three years, the Group is now well positioned as a focused and growing private label convenience foods business in its chosen markets of the UK and the US. We have strong customer relationships and a stable and dedicated workforce. However, market conditions remain challenging with like-for-like volume pressures in the UK grocery market, little economic growth and a consumer under considerable financial pressure. Poor harvests in the northern hemisphere mean that we will be again confronted with input cost inflation during FY 2013. Notwithstanding this background, the Group remains well positioned to deliver further progress in FY 2013 and beyond.
