IRELAND: Greencore shares up on FY profit growth

GREENCORE GROUP PLC
FULL YEAR RESULTS STATEMENT
STRONG PERFORMANCE DESPITE CHALLENGING MARKET CONDITIONS

27 November 2012

Greencore Group plc, a leading international convenience food producer, today issues its results for the year ended 28 September 2012.

HIGHLIGHTS
· 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."

Original source: Greencore