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Annual Results

Greencore sees continued growth

14 November 2016 07:19

Greencore Group reports continued growth in the year to the end of September and announced the proposed $747.5m acquisition of Peacock Foods.

The group saw continued strong momentum across UK and US food to go activity with 10.5% like-for-like revenue growth, well ahead of market performance.

And it said Phase two of the Northampton expansion project was completed on time with commissioning well under way. New sushi facility at Northampton also constructed and now being commissioned. Financial highlights:

- Group revenue of £1,481.9m, up 10.6% (as reported) and up 5.9% on a like-for-like basis

- Convenience Foods revenue of £1,435.2m, up 6.6% on a like-for-like1 basis

- Group EBITDA up 13.9% to £138.4m

- Group Operating Profit up 11.2% to £102.0m

- Group Operating Margin of 6.9%, a 10 bps increase

- Growth in adjusted EPS of 8.3% to 19.5p

- Proposed final dividend of 4.10 pence per share, giving a total dividend of 6.65 pence per share, up 8.1%

- Net debt of £331.8m with net debt:EBITDA leverage as measured under financing agreements of 2.4 times

Greencore also announced the proposed acquisition of Peacock Foods for total consideration calculated by reference to an enterprise value of $747.5 million (£594.3 million at 1.2577 exchange rate) on a debt free and cash free basis (the "Acquisition").

Peacock is a fast-growing US convenience food manufacturer with strong positions in frozen breakfast sandwiches, kids' chilled meal kits and salad kits, generating revenues of approximately $1 billion and Adjusted EBITDA of $72.1 million in year to September 2016.

Greencore's CEO Patrick Coveney said: "The acquisition of Peacock will transform our US business, strengthen our position in high growth categories, broaden our channel and customer exposure, and add significant scale to our operations. We believe Peacock's success is built on the same fundamental strategy and values that drive Greencore, making products that consumers love, building deep, longstanding relationships with customers, investing in high quality manufacturing capacity, food safety capability and, most importantly, people. We are delighted to welcome the Peacock team into the Greencore Group."

Story provided by StockMarketWire.com

Related Company: GNC

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