Convenience-foods giant Greencore has recorded group pro-forma revenue growth of 9.4%, in what the company described as a "challenging year".
Overall, group revenue for the full 2017 financial year increased by 56.5%, to £2,319.7 million, however, group operating profit plunged by 43.4%, to £42.7 million.
The company says that its operating leverage was impacted by costs associated with investment and restructuring, but that profit delivery and cash generation improved in the second half of the year.
Greencore's chief executive, Patrick Coveney, said that the company has been "substantially transformed this year", with performance boosted by its acquisition of Peacock Foods and an 18.8% growth in the UK food-to-go sector.
"While we have delivered good financial and operating progress in the year, the transformation has not been without its challenges," Coveney added. "However, we are confident that our strategy, portfolio, business model and momentum position Greencore well to drive profitability, cash flows, and returns in FY18 and beyond.”
Strategic Progress
Looking ahead, Greencore says that it will build on what has been "an intense phase of strategic progress and network investment", and it will take advantage of its exposure to higher-growth categories in the UK and US.
Earlier this month, Greencore also confirmed that it plans to restructure its operations in the UK, simplifying its business into two divisions.
The Ireland-based company said that it is now in consultation with a number of employees, but it is unable to provide any further comment until this process has been concluded.
In August, Greencore experienced a 14% drop in its share price, which was reported to have been triggered by the loss of a major contract with US coffee firm Starbucks.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.
