Last year proved challenging for ready meals maker Greencore (GNC) after sentiment was hit by the horse meat scandal - although its own products tested negative for equine DNA. Despite that, and a still subdued UK consumer backdrop, adjusted pre-tax profit rose 11.8 per cent to £61.6m.
Like-for-like sales at the UK prepared meals division fell 5.2 per cent, leaving revenue in the wider UK convenience foods segment just 0.2 per cent higher. Elsewhere, though, trading was stronger. UK food-to-go sales, which generates 40 per cent of total convenience food revenue, rose 4.4 per cent, while in the US, reported revenue grew more than 60 per cent to $200m (£124m). This was helped by two acquisitions - MarketFare and Schau - but also by the start of a new supply deal with Starbucks, which generated around 10-15 per cent of US revenue, according to chief financial officer Alan Williams. Overall, total revenue from convenience foods rose 3.5 per cent to £1.13bn, while operating profit jumped 7 per cent to £73.9m - helped by a 20 basis point margin improvement to 6.5 per cent.
Broker Investec Securities expects adjusted pre-tax profit of £67.1m for 2014, giving adjusted EPS of 15p (from 14.2p in 2013).
| GREENCORE (GNC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 185p | MARKET VALUE: | £747m | |
| TOUCH: | 184-185p | 12-MONTH HIGH: | 197p | LOW: 80p |
| DIVIDEND YIELD: | 2.6% | PE RATIO: | 10 | |
| NET ASSET VALUE: | 62p* | NET DEBT: | 92% | |
| Year to 27 Sep | Turnover (€bn) | Pre-tax profit (€m) | Earnings per share (¢)† | Dividend per share (¢)† |
|---|---|---|---|---|
| 2009 | 1.10 | -0.41 | -2.54 | 5.96 |
| (£bn) | (£m) | (p) | (p) | |
| 2010 | 0.74 | 26.2 | 8.10 | 4.81 |
| 2011 | 0.80 | 11.2 | 7.00 | 3.85 |
| 2012 | 1.16 | 28.9 | 9.00 | 4.25 |
| 2013 | 1.20 | 45.2 | 18.0 | 4.80 |
| % change | +3 | +56 | +100 | +13 |
Ex-div: 4 Dec Payment: 2 Apr *Includes intangible assets of £500m, or 124p a share †Adjusted for 2011's five-for-six rights issue | ||||
