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Greencore Group PLC on Tuesday said profit jumped in its recent financial year as revenue increased in both the food-to-go and convenience categories.
The Dublin-based convenience foods maker reported a 43% rise in pretax profit to £39.8 million in the 12 months that ended September 30 from £27.8 million the year before.
Greencore’s revenue increased 31% to £1.74 billion from £1.32 billion, with 35% growth in the food-to-go categories. Greencore said this was driven by increased pricing as the business mitigated inflationary pressures, ‘strong’ underlying volume growth, and a contribution from new business wins.
Convenience categories grew 19% following increases in underlying pricing and higher revenue in the Greencore’s Irish ingredients trading business.
Greencore completed a £10 million share buyback programme in early October, which is the first phase of the £50 million value return to shareholders announced back in May. Greencore said it plans to return a further £15 million through a share buyback in financial 2022.
No cash dividend was declared in for financial 2022, which is unchanged from the prior year.
Revenue has held up in the early weeks of financial 2023, although Greencore said it is seeing some mix effect between categories.
The company expects further substantial inflation in the year ahear. Greencore is working on cost recovery, and is making decisions on customer contracts which are ‘no longer economic’.
‘We remain cautious about the potential impact of the recessionary environment and cost-of-living factors on consumer spending through the year ahead,’ Greencore said.
Greencore shares were down 2.7% to 69.25 pence on Tuesday morning in London.
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