RNS Number:4399S
Greencore Group PLC
25 November 2003
GREENCORE GROUP PLC
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PRELIMINARY STATEMENT OF RESULTS
Year Ended 26 September 2003
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FINANCIAL HIGHLIGHTS
- Profit before tax* up 7% to Euro67.8 million
- 1% overall like-for-like sales growth, with 4% in convenience food
divisions
- Operating margin growth in all three divisions
- Like-for-like operating profit* up 7%, with growth in all three divisions
- Headline EPS* up 4% to 30.6 cent
- Underlying headline EPS** up 19%
- Net interest down 21% to Euro41.2 million
- Net debt down Euro133 million to Euro430 million
- $302 million (equivalent) raised in successful US private placement
OPERATIONAL HIGHLIGHTS
- Another year of strong growth in UK convenience food businesses
- Strong cash generation and solid profit growth in the ingredients and
agribusiness division, with excellent operational performance
- 1,200 new products launched
- Position as world's largest sandwich manufacturer consolidated
- Capacity in UK chilled ready meal market upgraded and extended to support
ongoing growth
- Successful entry into UK chilled soup market
* before exceptional items and amortisation
** headline EPS adjusted for constant currency and disposals
Commenting on the results, Greencore Group Chief Executive, David Dilger, said:
"These are strong results, with underlying EPS growth of 19%. They demonstrate
the potential of this business following the successful integration of Hazlewood
Foods and, most notably, its complementary growth and cash generative
characteristics. This is our second full year of results since the acquisition
of Hazlewood. In both years, we have produced strong single digit like-for-like
operating profit growth and excellent cash generation, with a consequential
significant reduction in our interest charge.
"In the year under review, our chilled and frozen division once again performed
particularly well, with 13% like-for-like operating profit growth. In addition,
we have again substantially reduced the Group's indebtedness.
"Greencore has been transformed over the last number of years and, as a result,
is well placed to achieve continued growth. We look forward to the future with
confidence."
Tuesday, 25 November 2003
For further information, please contact:
David Dilger, Chief Executive Tel: +353 1 605 1002
Patrick Kennedy, Chief Financial Officer Tel: +353 1 605 1003
Billy Murphy/Trish Morrissey, Drury Communications Tel: +353 1 260 5000
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RESULTS
Like-for-like sales grew by 1% and operating margin improvement in all three
divisions led to a 7% uplift in like-for-like operating profit*. There was a
further significant decline in the Group's interest charge, which helped to
offset both the negative translation impact of weaker sterling and a reduction
of Euro9.5 million in operating profit from discontinued activities. Profit before
tax* grew by 7%.
Headline earnings per share* grew by 4% to 30.6c (2002: 29.4c), notwithstanding
an increase in the effective tax charge from 11% to 13%. Underlying headline
earnings per share*, which calculates continuing earnings at constant exchange
rates, increased by 19% over the comparative period.
For the last two years, the Group has been heavily engaged in ensuring that
maximum value is obtained from the Hazlewood acquisition. The results reflect
the achievements of the Group in this regard and highlight the future potential
of its well balanced portfolio of businesses.
DIVIDEND
As outlined in the interim statement, since the acquisition of Hazlewood Foods
in 2001, the Board maintained, rather than increased, the level of the interim
and final dividend. The aim was to reduce, as swiftly as possible, the
indebtedness assumed to finance the acquisition. These results, and the recent
successful US private placement, demonstrate the benefits of this prioritisation
and the Board intends to continue this policy for the time being. The Board
also decided earlier this year to rebalance the weighting between the interim
and final dividend payments, increasing the interim dividend to reflect more
closely the relative profitability of the first half and second half of the
financial year. A final dividend of 7.58c per share is therefore proposed,
making a total for the year of 12.63c, which is in line with last year's level.
Shareholders will again be offered the option of receiving dividends in the form
of cash or shares.
DIVISIONAL HIGHLIGHTS
- The ingredients and agribusiness division performed strongly. Operating
margins improved significantly, resulting in operating profit* of Euro45.0 million,
up 4% on a like-for-like basis. Irish Sugar's profitability increased modestly,
whilst the profits of the Group's malt business increased following record
production levels, improved margins and ongoing cost control. The strong
performance was achieved despite a 5% decline in turnover, principally as a
result of a lower EU sugar quota and a stronger comparable period for the malt
division following last year's successful de-stocking programme.
- The chilled and frozen division had another very strong year, with operating
profit* from continuing operations of Euro40.2 million, up 13% on a like-for-like
basis. Like-for-like sales grew by 5% following strong performances in most
categories, most notably in sandwiches, ready meals and quiche.
- The ambient grocery division increased like-for-like sales by 2% and, with
operating margin improvement, generated operating profit* of Euro16.4 million, up
5% on a like-for-like basis. Within this division, the mineral water and
ambient sauce businesses performed well, the Group's UK bread business showed
modest improvement, whilst cakes and desserts had a mixed year.
*before exceptional items and amortisation
BOARD CHANGES
Pat McCann, chief executive of Jurys Doyle Hotel Group plc, has been co-opted to
the Board of Directors as a non-executive director. He has been chief executive
of Jurys Doyle since 2000 and is currently a member of the National Executive
Council of IBEC, a member of the executive council of the Dublin Chamber of
Commerce and chairman of its City Business Committee. He is a past president of
the Irish Hotels Federation and a former member of the National Tourism Council.
OUTLOOK
Further progress is anticipated in the current year.
The Group is confident that its convenience food businesses will continue to
outperform. With number one or number two market positions in almost all of
the categories in which it operates, the Group anticipates further good growth,
as the demographic factors that have driven the increased demand for convenience
food in the last decade intensify.
In the chilled and frozen division, the market continues to grow and the Group
is well positioned to benefit from this growth through the market leadership
positions and product innovation skills of its businesses. Further progress in
this division should be underpinned by additional trade that has been gained in
sandwiches, chilled ready meals and chilled soup. The Group remains focused on
achieving further improvements in operating margins and, in addition, is taking
the necessary steps to address the underperformance of the chilled pizza
business in the last two years.
In the ambient grocery division, additional trade has been gained in both the
mineral water and ambient sauces businesses. Bread price increases are being
implemented, whilst the operational improvements necessary at the Hull cakes
and desserts facility should be delivered.
Raw material price inflation in the UK convenience food businesses is higher
than has been experienced for a number of years, although the Group is
determined to offset it through price increases, product reformulation,
efficiencies and supply chain improvements.
Another solid year is anticipated from the ingredients and agribusiness
division. At Irish Sugar, the processing campaign has progressed well, the
quota of the business will be 5,290 tonnes higher than last year and the full
year's impact of the sugar price increase implemented last year will assist in
recovering inflation in the cost base of the business. The malt division has
experienced higher barley prices in recent months, although malt prices are yet
to reflect these increases fully. Nonetheless, strong operational efficiencies
and cost management, combined with the division's sales and purchasing
expertise, should enable a satisfactory performance to be delivered.
In addition, the Group is confident that the continued reduction in indebtedness
and improvement in the capital structure will lead to a further substantial fall
in interest payments.
Overall, the Group has successfully addressed the challenges presented by the
Hazlewood acquisition and integration and now has a well-balanced robust
portfolio of businesses that are well placed to achieve continued growth in the
future.
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OPERATIONAL REVIEW
Ingredients and Agribusiness Division +
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2003 2002 Like-for-Like
Eurom Eurom Change
Turnover (Continuing Operations) 504.2 539.9 -5%
Operating Profit (Continuing Operations)* 45.0 44.2 +4%
Operating Margin 8.9% 8.2%
* before goodwill amortisation and exceptional items
Sugar
Irish Sugar had a satisfactory year. Although sugar beet and other costs
increased and its sugar beet quota was reduced by 7,052 tonnes, the business
benefited from both the price increase obtained in the second half of the
previous year and a further price increase obtained in the year under review.
In addition, an excellent operational performance during the processing campaign
helped to offset the lack of sugar beet availability due to poor weather.
By-product prices fell due to a reduction in the price of other feed products,
while fertiliser and chemical results improved compared to the prior year.
In the current financial year, the business will benefit from a full year impact
of the recent price increase and an increase in sugar quota of 5,290 tonnes, as
recently announced by the EU. The processing campaign has, to date, progressed
well, whilst the flexibility and change programme, which is targeting a
substantial reduction in manning levels and unit costs over a three year period,
is expected to be finalised within the next number of months.
In the longer term, changes to the EU sugar regime are expected. However, the
Group believes that the fundamental structures of the EU sugar regime will be
retained, and that the regime will continue to enable efficient sugar
processors to make an adequate return on the significant capital investment
made by the industry.
Irish Sugar has, for many years, taken the necessary steps to maintain its
position as one of Europe's most efficient sugar processors. The impending
flexibility and change programme is a further example of this. This focus has
resulted, and will continue to result, in strong levels of cash flow being
generated by the business. The Group's strategy has been to deploy this cash
flow into businesses which are generating significant profit growth, with a view
to ensuring that the sugar business represents a modest proportion of total
Group profitability by the time that any regime changes might materially
impact the profitability of European sugar processors.
Malt
The malt division increased its profitability, delivering record production
levels despite the disposal during the year of the smallest of its three Belgian
maltings. The improvement was driven by good margin management and the business
also benefited from an increased contribution from Rusmalt, the joint venture
for the supply of management services to Sun Interbrew in the Russian market.
In the current selling season, barley prices have increased in line with
international grain prices. However, whilst a significant amount of trade is
not impacted by these movements, elsewhere the increases have not yet been
fully reflected in higher malt prices, most particularly in export markets.
Nonetheless, strong operational efficiencies and cost management, combined with
the division's sales and purchasing expertise, should deliver a satisfactory
performance.
Agribusiness
Interchem delivered a solid improvement in sales and profitability, driven by
new product introductions and higher spring cereal acreage. Drummonds had a
strong year, the features of which were improved efficiencies, lower costs and
a significant reduction in working capital, which offset a sales decline resulting
from poor grain yields from the 2002 harvest and a reduction in winter wheat
sowings. Profitability in Molasses advanced due to poor forage availability in
the first half of the year, combined with good margin and overhead management.
This increase in profitability was achieved despite a reduction in turnover
caused by the hot weather in the summer. The Group decided to close its Armer
Salmon subsidiary during the year, following the successful sale of its site and
surrounding lands.
Edible Oils
Trilby Trading, Ireland's leading importer and merchandiser of edible oils, had
another satisfactory year.
+ As communicated in this year's interim statement, following the disposal of
the fertiliser business, Grassland Holdings, in the second half of the previous
financial year, the Board decided to combine the results of its remaining
agribusinesses within the ingredients division for reporting purposes going
forward.
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OPERATIONAL REVIEW
Chilled and Frozen Division
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2003 2002 Like-for-Like
Eurom Eurom Change
Turnover (Continuing Operations) 613.3 635.8 +5%
Operating Profit (Continuing Operations)* 40.2 38.7 +13%
Operating Margin 6.6% 6.1%
* before goodwill amortisation and exceptional items
Sandwiches
The sandwich business enhanced its position as the world's largest sandwich
manufacturer. Good top line growth was experienced, driven by new product and
packaging introductions and the commencement of trade with some new customers.
Improved efficiencies and cost reduction initiatives ensured that this
growth was translated to the bottom line.
The strong growth over the last decade in the UK sandwich market is forecast to
continue and the Group's business remains very well positioned to capitalise on
this. It will invest in automation during the year to maintain and enhance its
market leadership position. Furthermore, additional trade to commence in the
new year has been gained and whilst raw material prices are increasing, this
gain, coupled with a strong new product development pipeline, underpins the
Group's confidence in another excellent year in the sandwich
category.
Chilled Ready Meals
Chilled ready meals had another successful year. The market remains buoyant,
with double-digit topline growth again experienced in spite of the hot summer
weather. Additional trade from several new customers was also gained during
the year.
Capacity was well managed, with several successful initiatives undertaken to
improve efficiencies, whilst Euro16 million was spent upgrading and extending
capacity at three of the Group's facilities.
The chilled ready meals market in the UK is forecast to continue to grow
strongly, as the frequency of purchase increases and the move to premium
products continues. The principal customer of the business continues to expand
its store base, and with the successful introduction of additional capacity,
prospects remain very attractive.
Quiche
The UK chilled quiche market has been reinvigorated over the last number of
years and the Group's quiche business had another strong year. The market
continues to be less impacted by seasonality, helped by product innovation and
more frequent eating occasions, whilst the business successfully relaunched
several of its key ranges through the year.
The prospects for the Group's quiche business remain attractive. In common with
other UK convenience food producers, the category is experiencing raw material
price inflation higher than levels of recent years, although this should be
offset by price increases, product reformulation, efficiencies and supply chain
improvements. Additional capacity is planned to be added to the quiche bakery
this year and further progress is anticipated.
Chilled Pizza
Although progress was made on several fronts, the Group's UK chilled pizza
business had a disappointing year. Volumes from the Bedford facility, which was
closed at the end of the previous year, and the Nelson facility, which was
closed during the year under review, were consolidated into the Deeside facility.
However, a high level of complexity arising from the wide range of products
assumed, combined with a lack of sales growth and excessive levels of temporary
labour, led to underperformance during the year.
Progress has been made in recent months and the Group is taking the necessary
steps to address the underperformance of this business.
Chilled Sauce and Soup
The chilled sauce market in the UK saw a slowdown during the year, with the hot
summer weather having a significant impact. The chilled soup market, whilst
having a quiet summer for the same reason, still grew by in excess of 20% during
the year as customer penetration, frequency of purchase and average spend all
increased.
The business commenced supply of chilled soup to two leading retailers at the
start of the year and gained further trade during the year. Capital expenditure
was undertaken at the Bristol facility to support this growth.
Frozen Savoury and Desserts
Roberts, the Group's frozen savoury and dessert business, experienced a fire at
its leading savoury facility during the year. Satisfactory insurance was in
place and production was transferred to other Group facilities whilst the
damaged facility was rebuilt. All production of Yorkshire puddings has been
transferred back into the new enhanced facility and Roberts is well positioned
to continue its growth in this market, although recent inflation in the costs
of its principal raw materials, most particularly egg, will need to be recovered
or reversed. Meanwhile, further strong growth was experienced in both the
retail and food service frozen dessert market.
Continental Chilled
The Group's continental chilled operations, based in the Netherlands, progressed
well during the year. Sales of sandwiches, chilled pizza and chilled sauce
increased, as new customers were won, the new 'Borgondi' brand was launched and
the business expanded its presence in both Belgium and Germany.
The sandwich facility at Alphen was successfully expanded during the year.
Disposals
During the year, the Group disposed of its UK chilled sausage business, J & J
Tranfield.
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OPERATIONAL REVIEW
Ambient Grocery Division
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2003 2002 Like-for-Like
Eurom Eurom Change
Turnover (Continuing Operations) 331.4 368.5 +2%
Operating Profit (Continuing Operations)* 16.4 17.0 +5%
Operating Margin 5.0% 4.6%
* before goodwill amortisation and exceptional items
Mineral Water
The Group's Scottish mineral water business had an excellent year, with
double-digit sales growth for the fifth year in succession. Sales benefited
from the continuing market growth and were also assisted by the hot summer
weather, with record weekly levels achieved in August. The business dealt very
well with this exceptional demand and enhanced its reputation with its customer
base accordingly.
The outlook for the business remains very strong. Market fundamentals remain
attractive, the business has recently increased its share of trade with its
largest customer, and a new production line, which will increase capacity and
improve efficiencies, is being installed in the new year.
Ambient Sauces
The ambient sauce and pickle business had another successful year. Sales grew
strongly as growth in retailer brand cooking sauces exceeded other brands for
the first time in several years. Price increases on certain product lines were
achieved and two co-packing contracts with global branded manufacturers
commenced during the year.
The outlook for this category remains positive. Additional trade has been
gained, there are good opportunities for further co-packing growth, and the
business plans to expand its food service offering significantly during the
year.
Cakes and Desserts
The Group's cakes and desserts business had a mixed year. The Christmas cake
trade was much improved on the previous year, whilst a significant number of new
products were introduced into the Hull facility. Additional cake trade was won,
the trade from the Bedford chilled dessert facility was transferred to the Hull
facility in April, whilst Yorkshire pudding production was temporarily
transferred to Hull in January after the fire at the Roberts facility in Leeds.
The combination of these factors led to short-term disruption and inefficiencies
which the business is addressing. Meanwhile, the chilled hot-eating dessert
category was impacted by the hot summer weather.
In the current year, Christmas cake production has progressed well and whilst
initial order levels are slower than in previous years, these should be
recovered by mid-December. Significant raw material cost inflation
is being experienced, which the business is actively attempting to recover.
Bread and Baked Goods
Rathbones delivered a modest improvement in its results for the year as a result
of the rationalisation and cost reduction measures implemented during the year
and in the prior year. Although UK private label bread market volumes declined
and surplus capacity still exists in the market place, the overall UK bread
market remained static in volume terms and increased by 5% in value terms.
The business has increased its focus on the premium segment of the market with a
series of premium product launches with a number of leading UK retailers. The
speciality business continued to improve, aided by new product introductions.
Whilst one of the two hot plate bakeries of the business was destroyed by fire
during the year, satisfactory insurance was in place, and its principal trade
has since been consolidated into two of the Group's other bakeries.
Flour prices have increased in the last number of months. The business is
currently in the process of implementing price increases, which should offset
recent inflation in flour and other cost categories.
ASSOCIATES
Share of profit of associates, net of share of interest, increased
significantly, from Euro4.2 million to Euro5.5 million. This reflected the inclusion
of the flour and oatmeal business, Odlums, as an associate for the full year,
following its partial disposal in 2002, and its continued strong trading. Other
associate companies also performed well.
FINANCIAL REVIEW
Net debt at 26 September 2003 was Euro430.0 million, a reduction of Euro133.2 million
from the September 2002 figure, and Euro443.7 million below the March 2001 figure,
which was the first reporting date after the Hazlewood acquisition. The net
debt reduction in the last twelve months reflects the successful focus on
cash generation across the Group, as well as a translation benefit of Euro33.3
million on the sterling element of the Group's indebtedness. Net interest
payable reduced accordingly from Euro51.9 million to Euro41.2 million.
Following the significant improvement in the Group's credit profile since the
acquisition of Hazlewood, a private placement of US$302 million (equivalent) in
senior notes was completed last month with nine institutional investors. The
notes were issued in US dollars and sterling, with the US dollar component
subsequently swapped into sterling. They comprise 7, 10 and 12 year maturities,
with an average maturity of 9.4 years.
A net exceptional profit of Euro0.6 million was recorded during the year, net of
tax. The exceptional cost within operating profit of Euro4.7 million relates to
start-up inefficiencies incurred until May 2003 at the Deeside pizza facility.
An exceptional profit of Euro3.3 million was recorded in respect of the sale or
termination of certain Group operations during the year and the excess of
insurance proceeds received over book value in respect of fixed assets destroyed
by fire. A net tax credit of Euro2.0 million arose on the exceptional items.
Significant capital investment was made in the period, most particularly in the
chilled ready meals category; capital expenditure of Euro51.6 million was incurred
in the year, whilst the depreciation charge was Euro46.2 million. The tax charge
of Euro8.8 million on ordinary activities equates to an effective rate of 13%, up
from 11% in the prior year.
Note
Like-for-like calculations exclude discontinued operations, use constant
exchange rates for comparisons and exclude sales from facilities damaged by
fire.
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CONSOLIDATED PROFIT AND LOSS ACCOUNT
Year Ended 26 September 2003
--------------------------------------------------------------------------------
2003 2002
Notes Before Amortisation Total Restated
exceptional and
items and exceptional
amortisation items
Euro'000 Euro'000 Euro'000 Euro'000
Turnover
Continuing operations 1 1,448,996 - 1,448,996 1,544,190
Discontinued operations 1 24,313 - 24,313 233,901
---------- ---------- ---------- ----------
1,473,309 - 1,473,309 1,778,091
---------- ---------- ---------- ----------
Operating profit before goodwill amortisation
Continuing operations 1 101,678 - 101,678 99,881
Discontinued operations 1 1,837 - 1,837 11,324
---------- ---------- ---------- ----------
103,515 - 103,515 111,205
Goodwill amortisation - (21,425) (21,425) (21,020)
Exceptional items 2 - (4,667) (4,667) (13,272)
---------- ---------- ---------- ----------
Operating profit
Continuing operations 101,678 (26,092) 75,586 66,793
Discontinued operations 1,837 - 1,837 10,120
---------- ---------- ---------- ----------
103,515 (26,092) 77,423 76,913
Share of operating profit of associated
undertakings 5,804 - 5,804 4,546
---------- ---------- ---------- ----------
109,319 (26,092) 83,227 81,459
---------- ---------- ---------- ----------
Exceptional items 2
Disposal of interest in subsidiaries
- Proceeds in excess of book value - - - 6,976
- Goodwill previously written off to reserves - - - (11,633)
---------- ---------- ---------- ----------
- - - (4,657)
Loss on sale/termination of operations - (288) (288) (10,042)
Profit on disposal of fixed assets - 3,583 3,583 -
---------- ---------- ---------- ----------
- 3,295 3,295 (14,699)
---------- ---------- ---------- ----------
Profit/(loss) on ordinary activities before
interest and taxation 109,319 (22,797) 86,522 66,760
---------- ---------- ---------- ----------
Net interest payable (41,250) - (41,250) (51,941)
Amortisation of issue costs of finance facility - (5,324) (5,324) (2,918)
Share of interest payable - associates (307) - (307) (375)
---------- ---------- ---------- ----------
Profit/(loss) on ordinary activities before 67,762 (28,121) 39,641 11,526
taxation
Taxation (8,809) 1,977 (6,832) (38)
---------- ---------- ---------- ----------
Profit/(loss) on ordinary activities after 58,953 (26,144) 32,809 11,488
taxation
Minority interests (1,298) - (1,298) (1,357)
---------- ---------- ---------- ----------
Profit/(loss) attributable to Group shareholders 57,655 (26,144) 31,511 10,131
Dividends 3 (23,864) - (23,864) (23,721)
---------- ---------- ---------- ----------
Retained profit/(loss) 33,791 (26,144) 7,647 (13,590)
========== ========== ========== ==========
Adjusted earnings per ordinary share 4 30.6c 29.4c
Basic earnings per ordinary share 4 16.7c 5.4c
Diluted earnings per ordinary share 16.6c 5.4c
==============================================================================
CONSOLIDATED BALANCE SHEET
At 26 September 2003
--------------------------------------------------------------------------------
----
2003 2002
Euro'000 Euro'000
Fixed assets
Intangible assets 370,348 391,773
Tangible assets 557,633 586,180
Financial assets 16,141 16,784
---------- ----------
944,122 994,737
---------- ----------
Current assets
Stocks 137,424 137,662
Debtors 123,062 178,974
Cash and bank balances 103,494 103,256
---------- ----------
363,980 419,892
Creditors
Amounts falling due within one year
- Bank debt 358,796 1,522
- Other 408,974 394,531
---------- ----------
767,770 396,053
Net current (liabilities)/assets (403,790) 23,839
---------- ----------
Total assets less current liabilities 540,332 1,018,576
---------- ----------
Creditors
Amounts falling due after more than one year
- Bank debt 174,747 664,907
- Other 24,055 28,488
Provisions for liabilities and charges 40,874 46,323
Development grants 1,510 2,332
---------- ----------
241,186 742,050
---------- ----------
Net assets 299,146 276,526
========== ==========
Capital and reserves
Called up share capital 122,103 121,584
Capital conversion reserve fund 934 934
Share premium account 87,370 85,847
Profit and loss account/other reserves 83,084 63,535
---------- ----------
Shareholders' funds - equity interests 293,491 271,900
Minority interests - equity interests 5,655 4,626
---------- ----------
299,146 276,526
========== ==========
==============================================================================
CONSOLIDATED CASH FLOW STATEMENT
Year Ended 26 September 2003
--------------------------------------------------------------------------------
2003 2002
Euro'000 Euro'000
Operating activities
Operating profit 77,423 76,913
Non cash items
- Depreciation 46,227 57,351
- Amortisation 20,021 19,454
- Other (including translation differences) (5,976) (12,372)
Changes in working capital 40,421 48,247
---------- ----------
Cash flow from operating activities 178,116 189,593
Dividends from associates 5,323 3,159
Returns on investments and servicing of finance (34,951) (70,941)
Taxation 4,119 (3,718)
Purchase of tangible fixed assets (51,570) (46,619)
Disposal of tangible fixed assets and termination of operations 12,762 14,912
Disposal of subsidiary and associated undertakings - 55,203
Net debt disposed of on disposals - 37,740
Equity dividends paid (13,739) (23,668)
---------- ----------
Cash flow before financing 100,060 155,661
Financing (126,580) (298,766)
---------- ----------
Decrease in cash and liquid resources in period (26,520) (143,105)
Cash flow from decrease in debt and lease financing 126,839 300,522
---------- ----------
Change in net debt resulting from cash flow 100,319 157,417
Loans and finance leases disposed with subsidiaries - 24
Finance leases (457) (2,678)
Translation differences 33,262 4,702
---------- ----------
Movement in net debt in year 133,124 159,465
Net debt at start of year (563,173) (722,638)
---------- ----------
Net debt at end of year (430,049) (563,173)
========== ==========
==============================================================================
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
Year Ended 26 September 2003
--------------------------------------------------------------------------------
2003 2002
Euro'000 Euro'000
Profit for year attributable to Group shareholders 31,511 10,131
Exchange adjustments 11,902 2,531
---------- ----------
Total recognised gains for the year 43,413 12,662
Prior year adjustments - 1,600
---------- ----------
Total gains and losses recognised since last annual report 43,413 14,262
---------- ----------
==============================================================================
NOTES TO THE FINANCIAL STATEMENTS
Year ended 26 September 2003
--------------------------------------------------------------------------------
1. Analysis of Results
2003 2002
Restated
Turnover Operating profit Turnover Operating profit
Pre goodwill Post goodwill Pre goodwill Post goodwill
& exceptional & exceptional & exceptional & exceptional
Euro'000 Euro'000 Euro'000 Euro'000 Euro'000 Euro'000
BY ACTIVITY
Continuing operations
Ingredients and 504,222 45,041 45,020 539,880 44,210 43,272
Agribusiness
Chilled and Frozen 613,327 40,228 19,319 635,770 38,670 16,253
Ambient Grocery 331,447 16,409 11,247 368,540 17,001 7,268
--------- --------- --------- --------- --------- ---------
1,448,996 101,678 75,586 1,544,190 99,881 66,793
--------- --------- --------- --------- --------- ---------
Discontinued operations
Ingredients and 3,410 - - 76,173 4,602 4,602
Agribusiness
Chilled and Frozen 20,903 1,837 1,837 80,069 3,827 2,623
Ambient Grocery - - - 77,659 2,895 2,895
--------- --------- --------- --------- --------- ---------
24,313 1,837 1,837 233,901 11,324 10,120
--------- --------- --------- --------- --------- ---------
Total 1,473,309 103,515 77,423 1,778,091 111,205 76,913
--------- --------- --------- --------- --------- ---------
BY GEOGRAPHICAL MARKET
Results by origin
Continuing operations
UK and Rest of World 1,124,420 70,774 44,703 1,199,562 69,611 37,461
Republic of Ireland 324,576 30,904 30,883 344,628 30,270 29,332
--------- --------- --------- --------- -------- ---------
1,448,996 101,678 75,586 1,544,190 99,881 66,793
--------- --------- --------- --------- -------- ---------
Discontinued operations
UK and Rest of World 20,903 1,837 1,837 107,317 3,933 2,749
Republic of Ireland 3,410 - - 126,584 7,391 7,371
--------- --------- --------- --------- -------- ---------
24,313 1,837 1,837 233,901 11,324 10,120
--------- --------- --------- --------- -------- ---------
Total 1,473,309 103,515 77,423 1,778,091 111,205 76,913
--------- --------- --------- --------- -------- ---------
Turnover by destination
Continuing operations
UK and Rest of World 1,150,819 1,218,448
Republic of Ireland 298,177 325,742
--------- ---------
1,448,996 1,544,190
--------- ---------
Discontinued operations
UK and Rest of World 20,903 119,217
Republic of Ireland 3,410 114,684
--------- ---------
24,313 233,901
--------- ---------
Total 1,473,309 1,778,091
--------- ---------
The comparative amounts have been restated to reflect discontinued activities.
2. Exceptional Items
A net exceptional profit of Euro0.61 million was recorded net of tax. The
exceptional cost within operating profit of Euro4.67 million is in respect of
commissioning projects undertaken until May 2003 at the Deeside pizza facility.
A net exceptional loss of Euro0.29 million was recorded in respect of the sale or
termination of certain Group operations during the year. In addition, a profit
of Euro3.58 million was recorded on the excess of insurance proceeds received over
book value in respect of fixed assets destroyed by fire. A net tax credit of
Euro1.98 million was recorded on exceptional items.
3. Dividends
The proposed final dividend per share of 7.58c (2002: 8.25c) is payable on 30
March 2004 to shareholders on the Register of Members at 5 December 2003. An
interim dividend of 5.05c (2002: 4.38c) was paid on 30 September 2003.
4. Earnings per Share
The calculation of adjusted earnings per share is after elimination of the
exceptional credit of Euro0.61 million (after tax relief: Euro1.98 million), goodwill
amortisation of Euro21.43 million (tax relief: nil) and amortisation of acquisition
finance facility costs of Euro5.32 million (tax relief: nil). The calculation of
adjusted earnings per share in 2002 is after elimination of exceptional charges
of Euro21.04 million (tax relief: Euro6.93 million), goodwill amortisation of Euro21.02
million (tax relief: nil) and amortisation of acquisition finance facility costs
of Euro2.92 million (tax relief: nil). The calculation of basic earnings per
share is based on a profit of Euro31.51 million (2002: profit of Euro10.13 million).
Both the calculation of adjusted EPS and basic EPS are based on 188.6 million
ordinary shares (2002: 187.4 million), being the weighted average number of
ordinary shares in issue during the period. The calculations of earnings per
share exclude 4.9 million treasury shares arising from the share repurchase
programme.
5. Accounting Policies
The foregoing accounts are prepared on the basis of the accounting policies set
out in the 2002 annual report.
The annual report and accounts will be circulated to shareholders in January
2004, prior to the Annual General Meeting to be held on 5 February 2004 in
Jury's Hotel, Ballsbridge, Dublin 4.
By order of the Board, C.M. Bergin, Company Secretary, 25 November 2003.
Greencore Group plc, St Stephen's Green House, Earlsfort Terrace, Dublin 2.
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