Greencore posts 6.4% jump in revenue as US business expands

London-listed food group Greencore has posted a 6.4 per cent jump in revenue as it expands its food to go business in the US.

The company, which supplies sandwiches to the 7-Eleven and Starbucks chains, said revenue for the year ending September 26th was £1.27 billion (€1.6 billion).

Group operating profit rose by 11.4 per cent to £82.9 million which translated into an adjusted earnings per share of 15.9 pence, a 13.6 per cent increase on last year.

The company, which is on a major expansion drive in the US, today announced the development of its first plant on the West coast.

The new facility in Washington State, which is expected to cost £20 million, will increase production capacity and enable Greencore service a newly-acquired contract.

While its US business is experiencing rapid growth, it is not yet operating at group average operating margin levels, the company said.

This was due to both to the learning curve and ramp-up costs on the various growth initiatives as well as site specific challenges.

Greencore said it was proposing a final dividend of 3.25 pence per share, giving a total dividend of 5.45 pence per share, up 13.5 per cent on last year.

“This has been a year of strong strategic, operational and financial progress for Greencore,” chief executive Patrick Coveney said.

“The group’s focus on extending our leadership in the food to go market is yielding great results, with like for like revenue growth in that area of the business exceeding 15 per cent.”

“We have strong market positions, a clear strategy, and are continuing to lay the foundations for future growth through a significant capacity and capability investment programme in both the UK and the US,” he added.