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Greencore Group PLC

Greencore Group A resilient outturn for the refocused business

Greencore Group plc (LON: GNC), a leading manufacturer of convenience food in the UK, has today issued its results for the year ending 27th September 2019.


· Pro Forma Revenue Growth in continuing operations of 2.6%, driven by 3.3% growth in food to go categories

· Adjusted Operating Profit growth of 0.9%, representing a 30 bps improvement in Adjusted Operating Margin

· Adjusted EPS growth of 6.0% to 16.0 pence

· Strong improvement in Free Cash Flow Conversion on an underlying basis

· Completed strategic reset of the Group following disposal of US business

· Reshaped the capital structure including the return of £509.0m of capital to shareholders

· Acquired Freshtime, a well-established supplier of meal salads and chilled snacking in the UK, in September 2019

· Net Debt of £288.5m, a reduction of £212.6m since the end of FY18, with Net Debt:EBITDA of 1.8x as measured under financing agreements

· Proposed total dividend increased by 11.3% to 6.20 pence


Group Revenue        1,446.11,498.5-3.5%
Pro Forma Revenue Growth  +2.6%
Adjusted EBITDA142.0140.0+1.4%
Adjusted Operating Profit105.5104.6+0.9%
Adjusted Operating Margin7.3%7.0%+30 bps
Group Operating Profit99.849.8+100.4%
Adjusted Profit Before Tax92.379.6+16.0%
Group Profit before taxation56.417.8+216.9%
Adjusted EPS (pence)16.015.1+6.0%
Group Exceptional Items (after tax)25.9(51.7) 
Basic EPS (pence)19.94.8+314.6%
Total proposed dividend per share (pence)6.205.57+11.3%
Free Cash Flow54.992.4-£37.5m
Net Debt288.5501.1 
Net Debt:EBITDA as per financing agreements1.8x2.3x 
Return on Invested Capital (“ROIC”)14.4%15.6%-120bps

Commenting on the results, Patrick Coveney, Greencore Group Chief Executive Officer, said:

“Over the past twelve months we have fundamentally reset our business, anchored by a clear strategy to drive shareholder value by expanding our category and channel capabilities within the diverse, growing and attractive UK food to go market. The evidence of this can be seen in the launch of multiple commercial and innovation projects with key customers, and in the recent acquisition of Freshtime. As a result of this reset strategy, we anticipate another year of profitable growth in FY20.”

1 The Group uses Alternative Performance Measures (‘APMs’) which are non-IFRS measures to monitor the performance of its operations and of the Group as a whole. These APMs along with their definitions are provided in the Appendix to the Full Year Results Statement.


Greencore has entered FY20 with a clear set of strategic objectives. These are to drive growth in an expanding food to go market, to deepen its relevance with customers, and to adopt a distinctive and repeatable Greencore Way of working. These are underpinned by an economic model of disciplined growth and investment.

The Group anticipates a year of profitable growth in FY20. The Group’s medium term financial ambitions are for mid single-digit organic revenue growth, high single-digit Adjusted EPS growth, the conversion of half of its Adjusted EBITDA to Free Cash Flow and for mid-teen ROIC.

A strong balance sheet and improved Free Cash Flow Conversion leaves the Group well placed to deliver on these ambitions and to consider further organic and inorganic investment in line with its capital allocation policy and strategic objectives.

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