Irish food group Greencore said today that improved consumer sentiment in Britain and good weather will boost its operating profit but its bottom line is set to drop after factoring in currency effects.
Greencore shares, of which financially-troubled property developer Liam Carroll holds just under 30 per cent, have performed strongly in recent days and were ahead 1.3 per cent at €1.46 at 10.05am. Over the last week the stock has risen from €1.17 and it is ahead over 55 per cent so far this year.
Greencore, which supplies sandwiches to supermarkets, garage forecourts and airlines, said it expected operating profit in the year to September to rise modestly from 2008 on a constant currency basis.
The company, which also makes prepared meals under the Weight Watchers brand, said it was on track to meet market expectations of 16.4 cents in adjusted earnings per share, down from 24 cents last year.
“The UK environment remains challenging although there has been a slight improvement in consumer sentiment in recent months,” it said in a statement, adding that the weakness of sterling versus the euro would impact its profits.
Greencore's UK chilled foods volumes increased by 4.4 per cent in the four months to July over the same period last year while its US Convenience Foods division recorded a 43 per cent underlying sales growth year on year.
“Continental European sales were behind by 9 per cent reflecting a weaker consumer environment in The Netherlands,” it said.
Bloomberg