Ireland-based food group Greencore said this morning (12 February) that profits remain “in line” with its last fiscal year but warned that the weak pound would continue to weight on earnings and sales.


The company, which makes a range of sandwiches, cakes and convenience food, said it expects to generate “a more significant proportion” of annual earnings from the second half of its fiscal year than it did last year.


Greencore, which reports around 80% of its operating profit in sterling, said the fall of the pound against the euro would weigh on earnings during its financial year.


“If the EUR/GBP level were to continue in the 0.88 to 0.90 range for the rest of the current financial year, the translation effect year-on-year would reduce group operating profit by circa EUR8m (US$10.3m), and profit before tax by circa EUR6m,” Greencore chairman Ned Sullivan will tell the company’s AGM today.


Lower demand for some of Greencore’s UK convenience foods has led to “tough” trading conditions in the market, the company said, although it reported a 5.1% rise in sales at constant currencies.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Meanwhile, Greencore said recent restructuring initiatives, including the closure of its frozen desserts site at Crosshills in the UK and the exit from a grain and agri-trading business in Ireland, would lead to a one-off charge of EUR18m this fiscal year.


Greencore is set to announce its half-year results in May.