EXCEPTIONAL COSTS of €25.2 million pushed listed food group Greencore into the red in the year to the end of September 25th, according to figures published yesterday.

The hefty exceptional costs left Greencore nursing an overall loss for the year of €8.4 million. Just under €24 million of the exceptionals related to continuing operations, with €3.4 million attributable to its former sugar business in Ireland. These were offset by a €2.1 million tax credit.

Greencore’s sales fell by 15 per cent to just over €1.1 billion while its operating profit declined to €46.9 million from €63.7 million.

This was due in part to the effect of a 13 per cent decline in the average euro-sterling exchange rate. Greencore earns 80 per cent of its operating profits in Britain.

On a constant currency basis, Greencore said its group sales decreased by just 0.8 per cent while its operating profit, before exceptional items and acquisition-related amortisation, was up 7.9 per cent at €72.9 million.

Adjusted earnings per share of 17.4 cent were in line with fiscal 2008 when the currency effect is removed.

Greencore said its convenience foods division increased its sales by 2.2 per cent to €794.4 million on a constant currency basis. When currency effects are stripped out, the convenience division boosted its operating profit by 14.1 per cent to €46.4 million.

Operating margin in this division rose by 50 basis points to 5.8 per cent.

In the food-to-go market, Greencore’s sandwich volumes were flat but it grew sales in salads and sushi. Greencore said it also made “significant progress” in building its convenience foods business in the United States. But its ingredients and property arm reported a drop in revenues of 8.2 per cent to €304.6 million.

Malt “deliveries” were down 14 per cent while its edible oils unit had a “challenging year”.

Greencore said it continues to explore “unsolicited approaches” for its Ireland-based malt business but there was “no certainty a transaction will be forthcoming”.

It would continue to remediate its former sugar plants in Mallow and Carlow and landbank the sites “for the foreseeable future”.

At Littlehampton in England, it is part of a consortium planning to make an application for 1,800 residential units.

Greencore said it was “on track to deliver modest earnings growth in full year 2010”. Its shares closed down just under 1 per cent in Dublin yesterday at €1.38.