Prepared foods maker Greencore reports bumper first half after buying US sandwich company

 
Alys Key
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Greencore Convenience Foods Manufacturing Site In Bristol
Greencore Group has expanded to the US (Source: Getty)

Convenience foods maker Greencore has reported a sharp rise in revenues for the first half of 2017 after a successful expansion into the US. The company specialises in food to go and prepared meals, including products for household names like Bisto and Heinz.

The figures

Revenue jumped by 46.1 per cent, breaking past the £1m mark. Underlying profit was up 31.2 per cent to £79.1m.

Net debt increased to £556.6m after the group acquired other businesses.

Greencore's share prices was up 8.1 per cent to 24570p this morning.

Why it's interesting

Greencore has been on a buying spree of, most significantly expanding into the America with a $750m takeover of US frozen breakfast sandwich maker Peacock. The company said the acquisition gives it greater opportunities to scale up. Revenues in the US arm grew 220 per cent for the period.

Last year the group also bought The Sandwich Factory from Cranswick for £15m.

What Greencore said

Patrick Coveney, Greencore's CEO, said: “This has been a transformational period for Greencore following the acquisition and integration of Peacock Foods in the US. Against a backdrop of considerable change across the Group, we are pleased to be reporting strong revenue and profit growth for the first half of the year.

"The enhanced capabilities, product offerings, and customer relationships that have been added to the Group in a short space of time, combined with the strength of our underlying business, mean that we are confident of making further progress in FY17 and beyond.”

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