LONDON (Alliance News) - Greencore Group PLC on Tuesday reported a double-digit jump in its interim profit on the back of lower costs.
For the six months ended March 29, the convenience food manufacturer posted pretax profit of GBP5.7 million, up 58% from GBP3.6 million a year ago.
This was due to lower operating costs, falling to GBP191.9 million from GBP222.8 million a year prior. Revenue meanwhile, decreased 4.6% to GBP701.4 million from GBP734.9 million.
"Greencore has had a good first half to the year, with clear financial and operational progress as we have extended our leadership position in key food to go categories in the UK," Chief Executive Officer Patrick Coveney said. "We have reshaped and strengthened our capital structure, and now have a robust foundation from which to pursue a range of new food to go product and channel opportunities."
The FTSE 250 firm upped its interim payout 11% to 2.45 pence per share from 2.20p a year ago.
Looking ahead, Coveney added: "While recognising that trading conditions in the wider UK grocery sector remain challenging, the growth outlook for our business continues to be encouraging, underpinned by favourable consumer trends and ongoing investment by our customers.
"As a result, we believe that our market positioning, capability set, customer relationships, well invested asset network and proven economic model will deliver strong future growth, cash generation and returns."
In a separate statement, the company said it promoted Peter Haden to serve as executive director on the board with immediate effect. He will take on the role of chief operating officer overseeing the group's day-to-day business.
Haden joined Greencore in January 2015 as chief development officer, and was appointed chief executive officer of the UK division in July 2018.
Greencore Group shares were trading down 1.5% at 219.30 pence each.
Greencore (GNC)