Ireland, Dublin: Greencore Group plc, the convenience food and ingredients group, announced on November 26 its preliminary statement of results for the year ended September 26, 2003. Profit before tax, exceptional items and amortization up 7% to EUR 67.8 million; 1% overall like-for-like sales growth, with 4% in convenience food divisions. The ingredients and agribusiness division performed strongly. Operating margins improved significantly, resulting in operating profit(a) of EUR45.0 million, up 4% on a like-for-like basis.
The profits of the Group's malt business increased following record production levels, improved margins and ongoing cost control. The strong performance was achieved despite a 5% decline in turnover, principally as a result of a stronger comparable period for the malt division following last year's successful de-stocking program. The malt division has experienced higher barley prices in recent months, although malt prices are yet to reflect these increases fully. Nonetheless, strong operational efficiencies and cost management combined with the division's sales and purchasing expertise, should enable a satisfactory performance to be delivered.
The malt division increased its profitability, delivering record production levels despite the disposal during the year of the smallest of its three Belgian maltings. The improvement was driven by good margin management and the business also benefited from an increased contribution from Rusmalt, the joint venture for the supply of management services to Sun Interbrew in the Russian market.
In the current selling season, barley prices have increased in line with international grain prices. However, whilst a significant amount of trade is not impacted by these movements, elsewhere the increases have not yet been fully reflected in higher malt prices, most particularly in export markets. Nonetheless, strong operational efficiencies and cost management, combined with the division's sales and purchasing expertise, should deliver a satisfactory performance.
26 November, 2003
