Decisive response to COVID-19; strong financial and operational model in place to build back the business
Greencore Group plc (‘Greencore’ or the ‘Group’), a leading manufacturer of convenience food in the UK, today issues its interim results for the 26 weeks ending 27 March 2020 and updates on its response to the COVID-19 pandemic.
HIGHLIGHTS 1,2,3
- Comprehensive and rapid response to COVID-19 by keeping our people safe, feeding the UK, and protecting our business with focus now turning to building back Greencore volumes as social restriction measures are eased
- Reported revenue growth of 1.6% and Pro Forma Revenue Growth of 0.1%, impacted by effect of COVID-19 on food to go categories at the end of the period
- Adjusted Operating Profit of £38.3m and Adjusted EPS of 5.8 pence
- Net Debt (excluding lease liabilities) of £311.1m at 27 March 2020 with Net Debt: EBITDA of 2.1x as measured under financing agreements
- Total cash and undrawn committed facilities of £267.5m at 27 March 2020 with covenant waivers agreed for bank facilities; in addition, confirmation of eligibility, in principle, to access funding under the Covid Commercial Finance Facility (CCFF)
- As announced on 30 March 2020, the Group will not be proceeding with an interim FY20 dividend payment and today announces that it will not be proceeding with either a final FY20 or an interim FY21 dividend payment
- Appointment of Emma Hynes as Executive Director and Chief Financial Officer with effect from 19 May 2020
SUMMARY FINANCIAL PERFORMANCE 1,2,3
| H1 20 | H1 19 | Change | |
| £m | £m | ||
| Group Revenue | 712.7 | 701.4 | +1.6% |
| Pro Forma Revenue Growth | +0.1% | ||
| Adjusted EBITDA | 63.8 | 62.5 | +2.1% |
| Adjusted Operating Profit | 38.3 | 44.7 | -14.3% |
| Adjusted Operating Margin | 5.4% | 6.4% | -100 bps |
| Group Operating Profit | 35.6 | 41.3 | -13.8% |
| Adjusted Profit Before Tax | 31.1 | 37.7 | -17.5% |
| Group Profit Before Tax | 27.3 | 5.7 | +378.9% |
| Adjusted EPS (pence) | 5.8 | 6.4 | -9.4% |
| Group Exceptional Items (after tax) | 0.4 | 28.8 | |
| Basic EPS (pence) | 5.3 | 10.5 | -49.5% |
| Interim dividend per share (pence) | – | 2.45 | |
| Free Cash Flow | 2.6 | (19.4) | +£22.0m |
| Net Debt | 374.4 | 284.1 | |
| Net Debt (excluding lease liabilities) | 311.1 | 284.1 | |
| Net Debt:EBITDA as per financing agreements | 2.1x | 1.9x | |
| Return on Invested Capital (“ROIC”) | 12.3% | 14.6% | -230bps |
Commenting on the results, Patrick Coveney, Chief Executive Officer, said:
“I am hugely proud of the way in which our people have responded to the extraordinary challenges of COVID-19, and take this opportunity to publicly thank them for their role in keeping the UK fed over the last two months. We have implemented a broad range of actions to mitigate the impact of COVID-19 on our business and to position us for growth as the pandemic eases. More than ever before, our deep customer relationships, leadership positions in key food categories, well invested network, flexible model, and outstanding people are key strengths that ensure we trade our way resiliently through this uncertain period”
