Greencore PLC: announces H1-2021 Results

Dublin / IE. (gg) Greencore Group PLC, a leading manufacturer of convenience food in the UK, issues interim results for the 26 weeks ending 26 March 2021.


  • Group Revenue declined 19.0 percent to GBP 577.1 million, driven by the reduction in consumer mobility as a result of tiered restrictions and lockdowns in the UK
  • Adjusted Operating Profit of GBP 0.2 million and Adjusted Loss per share of 1.4 pence
  • Net Debt (excluding lease liabilities) of GBP 271.3 million at 26 March 2021, a reduction of GBP 79.2 million since the end of FY20 and underpinned by an equity placing in November 2020 raising gross proceeds of GBP 90 million
  • Strong liquidity position with cash and undrawn committed debt facilities of GBP 302.0 million at period end, and H1 21 Net Debt: Ebitda covenant waived

Strategic Developments

  • Working with several key customers to renew and extend relationships with near term investments in capabilities, capital, and commercial terms that secure and support growth in new and existing categories and formats
  • Recent revenue momentum supported by new business wins secured during the last 12 months representing annualised pre-Covid revenues of approximately GBP 175 million, facilitated in part by a two year capital investment of approximately GBP 30 million across three manufacturing sites
  • A pipeline of further new business opportunities being actively pursued
  • Comprehensive range of pledges launched as part of the Group’s sustainability strategy


  • Encouraging revenue momentum in the first seven weeks of H2 21, with pro forma revenue in food to go categories running at approximately 123 percent above prior year levels and approximately 14 percent below the equivalent pre-Covid levels in FY19. For this period the Group’s pro forma revenue was approximately 64 percent above prior year levels and approximately 5 percent below equivalent pre-Covid levels in FY19
  • The Group anticipates that a continued reopening of the UK in line with the current roadmap and a consequential rebuild of Group Revenue would be expected to generate a FY21 Adjusted Operating Profit outturn above FY20 levels
  • Net Debt (excluding lease liabilities) is expected to reduce further in the second half of the year, from H1 21 levels
  • The Group is now focused on rebuilding profitability and cash flow momentum to pre-Covid levels, supported by the revenue rebuild, the unwind of Covid-19 operating constraints, and effective execution against new business opportunities

Summary Financial Performance

(in million GBP)
Group Revenue 577.1 712.7 -19.0 %
Pro Forma Revenue Growth -18.6 %
Adjusted Ebitda 26.5 63.8 -58.5 %
Group Operating Profit 3.9 35.6 -89.0 %
Adjusted Operating Profit 0.2 38.3 -99.5 %
Adjusted Operating Margin 0.0 % 5.4 % -540 bps
Group (Loss)/Profit Before Tax (1.8) 27.3 -106.6 %
Adjusted (Loss)/Profit Before Tax (7.9) 31.1 -125.4 %
Basic EPS (pence) 0.0 5.3 -100.0 %
Group Exceptional Items (after tax) 9.9 0.4
Adjusted EPS (pence) (1.4) 5.8 -124.1 %
Interim dividend per share (pence)
Free Cash Flow (23.6) 2.6 -26.2 mio.GBP
Net Debt 332.1 374.4
Net Debt (excluding lease liabilities) 271.3 311.1
Net Debt: Ebitda as per financing agreements 7.2x 2.1x
Return on Invested Capital (ROIC) (0.6) % 12.3 %


Chief Executive’s Statement

Commenting on the results, Patrick Coveney, Chief Executive Officer, said: «This has been a challenging period for Greencore, but the consistent build in our revenues since early March as lockdown measures have eased and Covid-19 cases have fallen give us real cause for optimism. Our focus now is on rebuilding revenue, profitability and cash flow momentum as the UK economy reopens. Our recent business wins are a great endorsement of our continuing relevance in the UK convenience food landscape. Underpinned by the quality of our people, our new sustainability strategy and the strength of our long-standing customer relationships, we are confident of being able to build back the business rapidly and profitably, and are optimistic about the medium-term prospects for Greencore.»

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