GREENCORE GROUP PLC
PRELIMINARY FULL YEAR RESULTS STATEMENT
Food to go continues to drive growth
14 November 2016
Greencore Group plc, a leading international convenience food business, today issues its preliminary unaudited results for the year ended 30 September 2016.
FINANCIAL HIGHLIGHTS
- Group revenue of £1,481.9m, up 10.6% (as reported) and up 5.9% on a like-for-like1 basis
- Convenience Foods revenue of £1,435.2m, up 6.6% on a like-for-like1 basis
- Group EBITDA2 up 13.9% to £138.4m
- Group Operating Profit2 up 11.2% to £102.0m
- Group Operating Margin2 of 6.9%, a 10 bps increase
- Growth in adjusted EPS3 of 8.3% to 19.5p
- Proposed final dividend of 4.10 pence per share, giving a total dividend of 6.65 pence per share, up 8.1%
- Net debt of £331.8m with net debt:EBITDA leverage as measured under financing agreements of 2.4 times
STRATEGIC DEVELOPMENTS
- Continued strong momentum across UK and US food to go activity with 10.5% like-for-like revenue growth, well ahead of market performance
- Phase two of the Northampton expansion project completed on time with commissioning well under way. New sushi facility at Northampton also constructed and now being commissioned
- Further capacity investments made in H2 16 in UK food to go capacity in order to support strong growth pipeline
- Acquisition of The Sandwich Factory Holdings Limited (“The Sandwich Factory”) in July 2016
- Rhode Island facility fully commissioned and Seattle build completed on time and to budget
- We have today also announced the proposed transformational acquisition of Peacock Foods which will accelerate our vision to become a fast-growing, international convenience food leader and establish a scaled and profitable platform for future growth in the US
SUMMARY FINANCIAL PERFORMANCE
| FY16 | FY15 | Change | Change | |
| £m | £m | (as reported) | (like-for-like)1 | |
| Group revenue | 1,481.9 | 1,340.3 | +10.6% | +5.9% |
| Group Operating Profit2 | 102.0 | 91.7 | +11.2% | |
| Group Operating Margin2 | 6.9% | 6.8% | +10 bps | |
| Adjusted PBT3 | 85.9 | 78.0 | +10.1% | |
| Adjusted EPS (pence)3 | 19.5 | 18.0 | +8.3% | |
| Proposed dividend per share (pence) | 6.65 | 6.15 | +8.1% | |
| Net debt | 331.8 | 265.5 | +£66.3m | |
| Return on Invested Capital (ROIC) | 13.8% | 14.1% | -30 bps | |
| Convenience Foods Division | ||||
| Revenue | 1,435.2 | 1,290.2 | +11.2% | +6.6% |
| Operating Profit2 | 100.0 | 89.6 | +11.6% | |
| Operating Margin2 | 7.0% | 6.9% | +10 bps |
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1 References to like-for-like (“LFL”) revenue growth exclude revenue from The Sandwich Factory from acquisition in July 2016 and are expressed in constant currency. FY16 was a 53 week accounting period. For comparative purposes, revenue for the week of 24-30 September 2016 has also been excluded.
2 EBITDA, Operating Profit and Operating Margin are stated before exceptional items and acquisition related amortisation. These are non-IFRS measures; and are reconciled to IFRS measures in Note 10.
3 Adjusted PBT and adjusted earnings measures are stated before exceptional items, pension finance items, amortisation of acquisition related intangibles, FX on inter-company and certain external balances and the movement in the fair value of all derivative financial instruments and related debt adjustments and are reconciled to IFRS measures in Note 10.
4 Market / category growth rates are based on Nielsen data for the 52 weeks to 1 October 2016 or Kantar data for the 52 weeks to 2 October 2016.
Commenting on the results, Patrick Coveney, Chief Executive Officer, said:
“This has been another year of strong performance for Greencore, and these results should be seen as a clear indication that our strategy of focusing on the UK and US Convenience Foods markets is continuing to work well. In the UK, we have delivered substantial like-for-like growth against the backdrop of a challenging retail market and an uncertain economic environment, and in the US we now have a business that is primed to deliver sustainable, profitable growth. Given the underlying commercial momentum across the Group, our strong market positions, the transformational acquisition of Peacock Foods in the US that we have announced separately today, and our recent new business wins, we are confident about Greencore’s future prospects.”
PRESENTATION
A presentation of the results and the proposed acquisition of Peacock Foods for analysts and institutional investors will take place at 9am today at Andaz hotel, 40 Liverpool St, London EC2M 7QN.
This presentation can be accessed live through the following channels:
- Webcast – details on greencore.com
- Conference call:
| Ireland number: | +353(0)1 2465602 |
| UK number: | +44(0)20 3427 1908 |
| US number: | +1212 444 0896 |
| Pass code: | 7652386 |
A replay of the presentation will be available on www.greencore.com. It will also be available through a conference call replay facility, which will be available for one week. To access this replay, please dial:
Ireland replay number: +353 (0)1 4860902
UK replay number: +44 (0)20 3427 0598
US replay number: +1 347 366 9565
Replay code: 7652386
For further information, please contact:
| Patrick Coveney | Chief Executive Officer | Tel: +353 (0) 1 605 1045 |
| Eoin Tonge | Chief Financial Officer | Tel: +353 (0) 1 605 1045 |
| Rob Greening or Lisa Kavanagh
Billy Murphy or Sarah O’Connor
|
Powerscourt
Drury | Porter Novelli
|
Tel: +44 (0) 20 7250 1446
Tel: +353 (0) 1 260 5000 |
To download the full FY16 Preliminary Results statement click here.
