Greencore announces factory investment following strong sales

Greencore Group has recorded a 10.6% rise in group operating profits
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Greencore Group, the convenience food manufacturer, has reported a 10.6% rise in group operating profits to £91.7m for the year ended 25 September 2015.

Revenue was up 5.4% on a like-for-like (LFL) basis for the company, which has plants in both the UK and USA, with LFL revenue in the UK Convenience Foods division up 4.7%.

The company said expansion of its Northampton sandwich facility had been completed in H1 and that construction of a new production facility adjacent to the existing site was well under way. On the back of strong trading in the sandwich sector, it also announced plans to add another manufacturing unit to the site.

Intended to add new food-to-go capabilities, it will enter production in Q2 of the 2017 financial year at a cost of £12m in capital investment.

Patrick Coveney, chief executive at Greencore Group, said: “Greencore has had another strong year and our clear food-to-go-led strategy has continued to drive growth in both the UK and US markets. We delivered 6% like-for-like revenue growth in Convenience Foods, 11% group operating profit growth and our fifth consecutive year of double-digit growth in adjusted EPS.

“We increased our investment in major capacity and capability improvement projects during the year, in each case underpinned by long-term customer relationships. Our strategy, momentum and pipeline of opportunities leave us well-placed to deliver further progress in FY16 and beyond.”

Capital investment over the year, principally at sites in Northampton and Rhode Island, USA, meant net debt rose from £212.1m to £265.5m.

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