A solid performance within Greencore's UK convenience foods business helped to drive like-for-like profit growth of 7 per cent in the year ending in September.

Results posted by the food and agribusiness group yesterday show that operating profits within continuing activities rose by 2 per cent to €101.7 million last year, or by 7 per cent when the effects of a stronger euro were stripped out.

Chief executive Mr David Dilger said he was "really confident" about the firm's positioning for the future.

Growth was drawn from all of Greencore's businesses on a like-for-like basis last year, although the company's underperforming pizza operation continued to act as a drag on results within its chilled and frozen division.

Mr Dilger said he was satisfied that returns from the pizza operation would improve going forward.

Operating profits before exceptionals and amortisation in the chilled and frozen area were 13 per cent ahead at €40.2 million on a constant-currency basis, or 4 per cent higher in actual terms.

The performance was underpinned by Greencore's continuing dominance in the sandwich market, where it is the world's largest player. Mr Dilger said the sandwich division was now firmly established as the "powerhouse" of the group.

He flagged the company's intention to move towards more efficient, automated production in both sandwiches and ready meals over the next few years.

Greencore's ingredients and agribusiness division, which includes Irish Sugar, generated operating profits before exceptionals and amortisation of €45 million, up 2 per cent on last year, or 4 per cent on a like-for-like basis.

Operating profits in Greencore's remaining division, ambient grocery, were 3 per cent behind last year at €16.4 million, or 2 per cent ahead in like-for-like terms.

Pre-tax profits before amortisation rose by 7 per cent to €67.8 million in the group as a whole, while basic pre-tax profits were 244 per cent ahead at €39.6 million, reflecting the inclusion of substantial exceptionals in the previous year's numbers.

The overall performance came on turnover of €1.4 billion, which was down 6 per cent on 2002 in actual terms.

The drop was balanced however against improved margins across all businesses.

Shares in Greencore fell two cents to €3.18 yesterday, having posted good gains in the run-up to the numbers.