Greencore said its performance as "solid" despite the current economic difficulties, reporting increased sales in its convenience food division in the four months to the end of July.
The company said that although turnover in the division had decreased 7.5 per cent to €284 million, this was partly due to the sterling impact, and on a like-for-like basis at constant currency, sales were up 7.2 per cent. It is expecting like for like sales growth in the division in the second half of the year, despite difficult conditions in the UK.
Greencore also said it has signed a 10-year deal with Weightwatchers to develop a range of chilled foods in the US, which be trialled in early 2009. The company said its US business had a "very encouraging start" since its acquisition of Home Made Brand Foods in April this year.
Looking to the second half of the year, Greencore warned the company was set to incur a €10 million exceptional charge as a result of reducing its ready meals and frozen desserts capacity. However, it said the group would record a net exceptional gain of about €8 million for the fiscal year 2008 when the initiatives in the second half of the year were combined with the €18.2 million exceptional gain in the first half of the year.
The group appointed KPMG to carry out a review of the business units, following news that there had been deliberate hiding of costs at its Campsie Mineral Water business. KPMG will act as auditors for the business from August 18th.
Greencore said it was on track to meet market expectations for earnings per share for the year.
