Greencore Reports Strong Performance, Names New Designate Chairman

•Growth of 44.5% in reported revenue to £1,161.9m, due to acquisition activity and business momentum;

 

•Revenue from Convenience Foods continuing activity1 of £1,036.9m, up by 11.2% or 7.4% excluding the impact of acquisitions in the year, despite challenging market conditions;

 

•Group operating profit2 up 37.3% to £70.7m, reflecting the acquisition activity and business momentum;

 

•Group operating margin of 6.1%, an expected 30 bps decline resulting from the incorporation of Uniq;

 

•Adjusted earnings3 of £49.2m, up 70.9% and adjusted EPS3 of 12.8p, up 21.9%;

 

•Net Debt of £258.0m, 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 ("MarketFare") and H.C. Schau & Son, Inc. ("Schau") and signed a supply agreement with Starbucks

 

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%, with like-for-like Convenience Foods revenues up 7.4% despite challenging market conditions. Operating profits, adjusted earnings and EPS were up 37%, 71% and 22% 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 FY13 and beyond."

 

The Board of Greencore, the leading international convenience food business, announces today that Mr. Gary Kennedy will succeed Mr. Ned Sullivan as Chairman when he retires after the Annual General Meeting in January, 2013 after ten years in the role.

 

Gary Kennedy has been a Non-Executive Director of Greencore since November 2008. He is a Director of Elan plc as well as being Chairman of its Audit Committee, in addition he is a Director of Irish Bank Resolution Corporation Limited, where he also serves as Chairman of the Audit Committee. He is also Director of Friends First Holdings Ltd as well as Chairman of a number of private companies. Previously he was Group Director of Finance and Enterprise Technology at Allied Irish Banks plc and a member of its main board together with subsidiary boards in the USA and Poland. Prior to that, he was Group Vice-President of Nortel Networks Europe. He served on the Board of the Industrial Development Authority of Ireland for ten years until he retired in December 2005. 

 

Ned Sullivan joined the Greencore Board in March 2002 having held senior management positions at Grand Metropolitan and having been Group Managing Director at Glanbia plc. He was appointed Chairman of Greencore in February 2003. During his tenure as Chairman he has successfully led the Company through its transformation from a commodity based agribusiness to a focussed, high performing international convenience food business.

 

Group Chief Executive Patrick Coveney said: "I would, on behalf of everybody associated with Greencore, like to thank Ned for his huge contribution to the Group over the past ten years. He chaired the Board during a period of enormous strategic, regulatory, marketplace, cultural and people changes. In doing so he demonstrated vision, resilience, wisdom, a collegial spirit and a deep knowledge and insight of the international food industry."