Adjusted pre-tax profits at the group soared to £16.9m (€19.8m), up 397.1pc from the corresponding period in its previous financial year. Group operating profit in the period was £25.3m, a sharp increase from £3.6m a year earlier. Half-year revenues declined 6.4pc to £866.1m.
Greencore attributed the fall in sales to the decision to exit a number of low-margin contracts in its previous financial year, as well as the sale of Trilby Trading last summer.
This decrease was partially offset by price increases and volume growth in the period.
Greencore expects an adjusted operating profit of £86m-£88m, which is currently ahead of market expectations.
The company reported that inflation had slowed across the group, although it noted that labour costs were still rising.
Greencore launched 184 new products in the first half of its financial year. It saw increased demand for premium product ranges, as well as affordable family foods, in recent months.
The food group reported that it had focused on improving performance across its manufacturing footprint and will now move to consolidate its soups business into one site in Bristol.
The business also signed a new large ready-meals contract, which will be produced at its Kiveton site from the end of this year.
Greencore is set to launch a £30m share buyback programme as it seeks to return £50m to shareholders. The company’s board also intends to declare a dividend for the year to September if business continues to trade as expected.
“The group’s accelerating financial performance is very encouraging as we focus on driving profitability and returns,” chief executive Dalton Philips said.
“We are working with our major retail customers to develop new products and new offerings which are driving the growth of our food-to-go segment ahead of the market.”
He added that the business is currently undertaking “a range of actions to increase the returns profile of each element of the portfolio.”
Greencore reported revenues of £1.9bn in its previous financial year. The company, which is headquartered in Dublin, has 16 manufacturing sites and 17 distribution sites in the UK.
The business employs around 13,600 people.
