Notification of Reporting Changes

 

GREENCORE GROUP PLC

NOTIFICATION OF REPORTING CHANGES

 

 

10 May 2017

Greencore Group plc ("Greencore" or the "Group"), a leading manufacturer of convenience food in the UK and US, announces a change to its reporting structure as well as the restatement of its historic earnings per share and dividend per share.

 

Change in reporting structure of Operating Segments

 

Following the acquisition of Peacock Foods in the US, which completed on 30 December 2016, Greencore has simplified its reporting structure. The Group will now have two separate reporting segments:

1.     Convenience Foods UK & Ireland: incorporating Food to Go (i.e. sandwiches, sushi and salads), and other UK & Ireland businesses including Prepared Meals (i.e. ready meals, quiche, soups and sauces), the Grocery set of businesses (i.e. cooking sauces, Yorkshire Puddings, cakes and desserts) and the edible oils and molasses trading businesses (formerly known as the Ingredients & Property Division)

 

2.     Convenience Foods US: incorporating Greencore's existing US business and the acquired Peacock Foods business (i.e. a wide range of fresh, frozen and ambient convenience food products - including sandwiches, meal kits and salads kits - and a customer base including CPG companies as well as convenience retail and food service leaders)

 

The following table sets out the revenue and Group operating profit (before exceptional items and amortisation of acquisition related intangible assets) for both the half year ended 25 March 2016 and the full year ended 30 September 2016 as reported and as restated under the revised reporting segments:

 

	As Reported			Restated
	Full Year  2016	Half Year 2016		Full Year  2016	Half Year 2016
	£m	£m		£m	£m
Revenue
Convenience Foods	1,435.2	667.9
Ingredients & Property	46.7	23.7
Convenience Foods UK & Ireland				1,258.8	590.4
Convenience Foods US				223.1	101.2
Total	1,481.9	691.6		1,481.9	691.6
Group Operating Profit before exceptional items and amortisation of acquisition related intangible assets
Convenience Foods	100.0	42.9
Ingredients & Property	2.0	0.6
Convenience Foods UK & Ireland				104.1	46.7
Convenience Foods US				(2.1)	(3.2)
Total	102.0	43.5		102.0	43.5

 

 

 

 

Earnings per Share Restatement

 

The Group completed a rights issue during December 2016, the purpose of which was to fund the acquisition of Peacock Foods, which completed on 30 December 2016. Following the completion of a rights issue, the Group is required to restate historic earnings per share to reflect the bonus element of the rights issue. The weighted average number of shares for both the half year ended 25 March 2016 and the full year ended 30 September 2016 have been restated below to incorporate the bonus share element of the rights issue. In addition, Basic Earnings per Share, Adjusted Basic Earnings per Share, Diluted Earnings per Share and Adjusted Diluted Earnings per Share have been restated to reflect the revised weighted average number of shares in issue.

 

Revised Basic Earnings per share, Adjusted Basic Earnings per Share, Diluted Earnings per Share and Adjusted Diluted Earnings per Share figures:

 

							As Reported			Restated
							Full Year 2016	Half Year 2016		Full Year 2016	Half Year 2016
Earnings per Ordinary Share (pence)
Basic earnings per Ordinary Share							11.6	4.9	9.5		4.0
Adjusted earnings per Ordinary Share							19.5	8.2	16.0		6.7
Diluted  earnings per Ordinary Share							11.4	4.8	9.4		4.0
Adjusted diluted  earnings per Ordinary Share							19.2	8.1	15.8		6.6

 

Denominator for the Basic Earnings per share, Adjusted Basic Earnings per Share, Diluted Earnings per Share and Adjusted Diluted Earnings per Share calculation: 

 

						As Reported				Restated
						Full Year 2016	Half Year 2016			Full Year 2016	Half Year 2016
Weighted average number of ordinary shares in issue during the period - for basic and adjusted EPS						409,256	408,202		497,878		496,596
Weighted average number of ordinary shares in issue during the period - for diluted basic and adjusted diluted basic EPS						414,584	413,656		504,360		503,231

 

Dividend per Share Restatement

 

The Group completed a rights issue during December 2016, the purpose of which was to fund the acquisition of Peacock Foods, which completed on 30 December 2016. For comparative purpose, the Group is restating historic dividend per share, to reflect the bonus element of the rights issue, for the Interim, Final and Total dividend for the year ended 30 September 2016.

 

Revised Dividend per Share figures:

 

Dividend per Ordinary Share (pence)
					As reported			Restated
Interim dividend for the year ended 30 September 2016					2.55			2.10
Final dividend for the year ended 30 September 2016					4.10			3.37
Total dividend for the year ended 30 September 2016					6.65			5.47

 

 

For further information, please contact:

Patrick Coveney	Chief Executive Officer	Tel: +353 (0) 1 605 1045
Eoin Tonge	Chief Financial Officer	Tel: +353 (0) 1 605 1029
Rob Greening or Nick Brown	Powerscourt	Tel: +44 (0) 20 7250 1446

 

About Greencore

Greencore is a leading international producer of convenience foods with extensive operations in the UK and the US. Headquartered in Dublin, it employs 16,000 people in 30 manufacturing facilities across the UK and the US. On average, it manufactures around 1.5 billion sandwiches and 140 million ready meals every year.

 

In the UK, it has strong market positions across sandwiches and other food to go products as well as complementary positions in other convenience food categories, including chilled prepared meals, chilled soups and sauces, ambient sauces & pickles, cakes & desserts and Yorkshire Puddings. It is a supplier of own-label products to all of the major UK supermarkets, and has world-class manufacturing sites with industry-leading technology and supply chain capabilities.

 

Following its acquisition of Peacock Foods in in 2016, Greencore is now a leading manufacturer of consumer packaged goods for many of the largest food brands in the US. Greencore also produces chilled and frozen food to go products for convenience retail and food service leaders in the US.

 

For more information go to www.greencore.com or follow Greencore on social media.