Food company Greencore reported half year operating profits of €42 million and reported good progress in its transition to a convenience food specialist.
The company, which closed its Irish sugar processing business at cost of €168 million earlier this year, said turnover grew 8.1 per cent to €442 million.
Commenting on the results, Greencore chief executive David Dilger said: 'These results represent a solid underlying performance against a background of a competitive convenience foods environment and EU sugar reform that has led us to exit sugar processing in Ireland.
"The future for Greencore now lies in convenience foods. I am pleased by the continued progress of and future prospects for that division."
Greencore has switched its focus in recent years from agri-business to the chilled convenience foods market. Growth in this market has improved modestly over the last six months, with annual growth now running at 4.5 per cent.
The group has carved out strong market positions in niche areas such as chilled sauces, where it commands a 41 per cent market share in a market growing at a pace of 15 per cent annually.
In cakes, where the overall market grew at 6 per cent, Greencore's celebration cakes and christmas cakes, had growth of 16 per cent and 10 per cent, respectively.
Greencore advised the market this morning that while trends in convenience foods are encouraging, conditions remain difficult for the ingredients and remaining agri-business operations.
The group said malt remains a challenge but the anticipated upturn in malt prices is expected to assert itself in later this year.