Greencore expects higher profits

Greencore said today it expects full-year group operating profit on continuing businesses to be about 20 per cent ahead of its last fiscal year.

In a trading update issued this morning, the food group said its performance in the late summer months and through September was "fully in line" with expectations, and said group performance would be "robust".

This year’s disposals have included the sale of its malt business to French co-operative Axéréal Union De Coopératives Agricoles in a deal worth up to €116.25 million.The plan was announced in February, and despite opposition from growers, was approved by shareholders the following month.

In July, the company said it would sell its Dutch convenience food business, which was expected to net it €12 million, although an exact figure was not disclosed at the time. A subsidiary of European investment firm Parcom, Convenience Foods Europe, bought the Greencore Continental unit.

Greencore said it expects adjusted earnings per share of about 16.5 cent for the year, including 3.5 cent of earnings in respect of its malt, water and continental businesses.

Sales from continuing businesses in convenience foods are expected to be 8 per cent ahead of fiscal year 2009.

Greencore said it expects to deliver a strong performance in its ongoing businesses in fiscal year 2011.

The company will release its preliminary results for this year on November 23rd.

Shares in the food group rose 1.5 per cent to €1.16 shortly before 2.45pm.