Peacock acquisition boosts Greencore revenues

Irish convenience food group Greencore reported a rise in first-half pre-tax profit as revenue grew thanks in part to its acquisition of US food company Peacock Foods.

In the half year to the end of March, adjusted pre-tax profit rose to £44.7m from £36.5m on revenue of £1.01bn, up 46% from the same period a year ago. In the UK & Ireland convenience foods business, revenue was up 16.1% on a reported basis to £685.7m, while revenue in the same business in the US was up 221% on a reported basis to £324.6m.

Chief executive officer Patrick Coveney said: "This has been a transformational period for Greencore following the acquisition and integration of Peacock Foods in the US. Against a backdrop of considerable change across the group, we are pleased to be reporting strong revenue and profit growth for the first half of the year. In the UK, we have delivered significant expansion and investment following recent new long-term business wins, as our Food to Go business continues to grow rapidly.

"In the US, the addition of Peacock Foods has transformed our market and channel position and has given us a growth platform of real scale. The enhanced capabilities, product offerings, and customer relationships that have been added to the group in a short space of time, combined with the strength of our underlying business, mean that we are confident of making further progress in FY17 and beyond."

As far as Brexit is concerned, the company said that although the impact is far from certain, it is worth noting that its business in the UK is local, i.e. made and sold in the UK, therefore carrying less trade risk.