TOP NEWS: Greencore to reintroduce dividend if trading goes to plan

(Alliance News) - Greencore Group PLC on Tuesday said it will launch a GBP30 million share ...

Alliance News 21 May, 2024 | 9:16AM
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(Alliance News) - Greencore Group PLC on Tuesday said it will launch a GBP30 million share buyback and added that it could return to the dividend list should it trade as expected.

Greencore shares were up 15% to 160.60 pence each in London on Tuesday morning.

The Dublin-based producer of convenience foods said in the first half ended March 29, it swung to a pretax profit of GBP14.7 million, from a pretax loss of GBP6.2 million the year prior.

Revenue fell 6.4% to GBP866.1 million from GBP925.8 million. The revenue decline reflects its decision to leave a "number of low margin contracts".

Helping its bottom line, cost of sales fell 12% to GBP585.0 million. It reported GBP1.5 million worth of net exceptional costs, down from GBP6.4 million. Exceptional costs this time around included GBP1.5 million worth of transformation costs. Costs in the prior year included GBP7.7 million worth of reorganisation costs.

Greencore reported its first-half adjusted operating margin grew to 3.3% from 1.3%. Adjusted operating profit jumped to GBP28.3 million from GBP11.8 million.

The company currently expects a full year adjusted operating profit in the range of GBP86 million to GBP88 million, up from GBP76.3 million last year. Its guidance is ahead of "current market expectations".

Chief Executive Officer Dalton Phillips said: "We are working with our major retail customers to develop new products and new offerings which are driving the growth of our Food to Go segment ahead of the market. We have exited low margin business and are undertaking a range of actions to increase the returns profile of each element of the portfolio."

If trading continues as expected, Greencore said it will pay a dividend for the first time since financial 2019.

The company also announced a GBP30 million share buyback. This follows a previous buyback between May 2022 and February 2024 which returned GBP50 million to shareholders.

By Elijah Dale, Alliance News reporter

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Greencore Group PLC 162.00 GBX -2.76 -

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