Greencore ‘comfortable’ with market expectations

Source: Food and Drink Digital

Date :14/02/2008 11:43:46

Irish food group Greencore, the world’s largest producer of prepared sandwiches, said today that it is set to meet expectations in spite of concerns in the currency market.

In a statement released before its annual meeting today, the company said that it will probably report ‘strong growth’, despite worries over the weakness of the sterling.

“If the EUR/GBP level were to continue in the 0.74 to 0.75 range for the rest of the current financial year, the translation effect year-on-year would reduce Group operating profit by €8 million, and profit before tax by €6 million,” said Greencore. The company generates 80 percent of operating profit in the UK currency.

“Overall, we are happy with the outlook for the Group’s portfolio in FY08 and beyond. While recognising that the second half of the year is a much more significant contributor to Group profits, and allowing for the anticipated currency translation effect, the Board remains comfortable with current market expectations,” it continued.

However, profit at Greencore has fallen 16 percent in the critical second half period, mainly due to the impact of unseasonal summer weather and strong raw material inflation in the final quarter.

February 14, 2007