A strong performance from Greencore's convenience foods division helped offset difficult trading conditions in its sugar and bakery businesses in the year to the end of September.
Turnover from continuing operations rose by 23 per cent to €1.6 billion while operating profits were up by 14 per cent to €102.2 million. The company reported earnings per share of 29.4 cents, in line with expectations. A final dividend of 8.25 cents is proposed, bringing the full-year total to 12.63 cents, unchanged from last year.
Greencore, which sold 11 businesses and closed four more during the year, said all four of its divisions posted like-for-like sales growth with an overall increase in like-for-like sales of 8 per cent.
The chilled and frozen foods division, which includes sandwiches, ready meals and pizza, reported a 60 per cent jump in operating profits to €41.2 million. Greencore is now the world's leading producer of sandwiches and expects continued growth of 9 to 10 per cent in that market.
By contrast, its ingredients division saw operating profits drop by 12 per cent to €38.4 million.
Despite a strong performance from its malt and flour businesses, Greencore's sugar division hit profitability. An increase in beet prices, the impact of last year's dispute with beet growers and cost inflation, particularly in insurance, were the main factors affecting performance.
However, the sugar business should benefit from the full-year impact of a recent price increase in the current financial year.
Greencore chief executive Mr David Dilger also said Irish Sugar was very close to negotiating a four-year flexibility and change programme that would improve productivity by 40 per cent.
Greencore is also experiencing difficulties in its British bakery business, Rathbones, which has been losing market share to branded competitors. Mr Dilger described it as the "biggest challenge" facing the company but said Greencore had already taken a number of steps to address the issue.
As well as cutting costs, it is rationalising distribution and reducing capacity by 20 to 25 per cent. Its bakery in Milton Keynes is being sold and will cease production next month.
But Mr Dilger said that, while next year would be better for the bakery business, it still wouldn't be good enough. "We have to do more. All options are being considered and pursued," he said, including amalgamation or a sale of the business.
The weakness in the bakery business held back the overall ambient grocery division, which also includes the sauce and pickles operation. It reported a 6 per cent rise in operating profit to €17 million, while the company's agribusiness division turned in a 24 per cent rise in profits to €5.6 million.
The company said net debt had been reduced by €159 million to €563, a better performance than expected, and it expects to continue to pay down its borrowings.
The results included an exceptional cost of €13.3 million related to start-up delays at Greencore's new pizza and cake facilities, redundancies from the elimination of Hazlewood's continental divisional structure and rationalisation of the branch network of the Irish malt operation.
