30th Nov 2021 12:00
(Alliance News) - Greencore Group PLC on Tuesday said that annual profit soared despite supply chain issues and labour challenges.
The Dublin-based convenience foods manufacturer reported that pretax profit for the year ended September 24 swung to GBP27.8 million from a loss of GBP10.8 million the year before.
This was on revenue which grew 4.8% year-on-year to GBP1.32 billion from GBP1.26 billion.
The company said that close engagement with customers was central to this delivery.
"In the first half of the year, during periods of mobility restrictions, the group worked with customers on effective range management. Subsequently, as mobility restrictions were lifted in the UK, the group designed and implemented growth programmes with customers, with a focus on building back rapidly in affected categories, to reactivate product ranges and formats in spring and early summer," Greencore stated.
The company did not declare a final dividend for this year, in line with the prior year.
Looking ahead, Greencore still noted that profit conversion continues to be impacted by supply chain issues and labour challenges.
Nonetheless, the company expects to generate a full-year 2022 outturn in line with current market expectations, subject to no future mobility restrictions or further lockdowns.
"Greencore has weathered the storm and emerged strongly from a difficult period. Following a challenging first half in full-year 2021, we made good progress in rebuilding revenues, cashflows and profitability in the second half and are confident of maintaining this positive trajectory in the year ahead, particularly in the seasonally important second half," Chief Executive Patrick Coveney said.
Shares in Greencore Group were up 0.5% at 123.40 pence each on Tuesday morning in London.
By Abby Amoakuh; [email protected]
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