Irish food group Greencore today (6 December) reported a drop in annual profits as costs linked to its aborted merger with Northern Foods hit the company’s bottom line.

Greencore booked net profit from continuing operations of GBP19.9m (US$31.1m) for the year to 30 September, a fall of 7.8%.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

The company’s annual net profit included GBP11.7m in costs linked in part to charges from its failed attempt to merge with UK rival Northern. Greencore saw its plans derailed by UK poultry supplier Boparan Holdings, which acquired Northern in April.

The costs also included restructuring charges and a legal settlement, Greencore noted.

However, Greencore’s underlying profits fared better and the results boosted its stock, a day after its shares tumbled following its admission that talks to sell the business had failed.

Greencore’s shares fell 11% yesterday after it said takeover talks with a mystery suitor had ended. Today, Greencore’s shares were up 3.61% at EUR0.66 on the Irish Stock Exchange.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Excluding the costs, Greencore’s net profit jumped 47.6% to GBP31.5m. However, the company’s operating profit dipped from GBP51.6m to GBP51.5m as its cost of sales increased. Operating margin from its core convenience foods dropped 20 basis points to 6.7%.

Revenue was up 8.7% to GBP804.2m. Like-for-like sales, which excluded an extra selling week in the year and the impact of Greencore’s acquisition of US firm On The Roll, increased 4.3%.

CEO Patrick Coveney said the year had seen the “transformation” of Greencore into a “focused and growing convenience food business”.

Coveney said Greencore was “delighted” with the way the company’s two acquisitons – On The Roll and UK desserts and sandwich maker Uniq – had been integrated into the group.

He added: “Whilst the UK and US food markets remain challenging, we are confident of being able to drive further growth and shareholder value through our close customer relationships, strong operational performance and outstanding products.”