IRELAND: Currency, costs weigh on Greencore
Greencore, the Irish food group, has seen the fall in the pound against the euro eat into half-year profits.
The company today (28 May) posted a 2.5% rise in underlying operating profit to EUR41.1m (US$64.5m) for the six months to 28 March. Stripping out the effect of currency fluctuation, profits were up 11.8%.
The weaker pound also hit sales, with turnover up 2.5% to EUR648.7m. On a constant-currency basis, sales climbed 10.4%.
Chief executive Patrick Coveney said: "These results represent very good progress in an environment characterised by substantial food inflation and a significant decline in the value of sterling relative to the euro.
"This performance reflects a portfolio that is working, strong customer relationships across convenience foods and malt, excellent cost control and good inflation recovery."
The rise in profits came from Greencore's ingredients business, which saw earnings soar by 72%.
Profits from the company's convenience foods business, which accounts for more than two-thirds of earnings, fell 3.8%, due to rising commodity costs. Greencore said it saw "margin attrition" in its ambient cooking sauces and pickles business.
However, Greencore said it expects "modest profit growth" from its convenience food business on a constant-currency basis as it looks to increase prices.
This week has seen two major appointments shake the food retail landscape. Just days after Carrefour named a new CEO, arch-rival Wal-Mart looked within and appointed Mike Duke, the head of its interna...
The food industry has put itself at the heart of the UK government's new Change4Life anti-obesity drive. Ben Cooper reports on what companies are aiming to contribute and the merits of a collaborative...
Richard Lancaster, the former MD of Netto UK, has taken up the position of senior trading director at Morrisons....
International foods and ingredients company Vion has announced a number of changes to its executive board....
Convenience store operator The Pantry has posted a 30.2% rise in full-year revenues, which jumped to US$9bn....
HJ Heinz has been ranked as the highest food company on the University of Michigan's American customer satisfaction index, the US-based food giant said today (18 November)....
Tesco is expanding its operations in the Slovakian market, with the opening of its first Tesco Express store last week (13 November)....
Nearly 60% of consumers will treat Christmas as usual this year and intend to spend the same as last year despite the economic crisis, according to a new survey....
- Does Kraft Heinz want to swallow Unilever whole?
- US food next wave on display at Winter Fancy Food
- Focus: Nestle CEO plan to balance sales, earnings
- Comment: Meal kits in US - don't believe the hype
- Wessanen eyes growth in "resurgent" organic market
- Kraft Heinz pulls Unilever bid
- General Mills issues profit warning
- Kerry operating earnings strengthen on slow sales
- Kerry Group staff in Ireland suspend strike action
- Kerry's Scanlon to replace McCarthy as CEO