Greencore Announces Preliminary Statement of Results for the Year Ended September 27, 2002.Business Editors DUBLIN, Ireland--(BUSINESS WIRE)--Nov. 27, 2002 Greencore Group plc, the convenience food and ingredients group, today announced its preliminary statement of results for the year ended September 27, 2002. FINANCIAL HIGHLIGHTS - Turnover from continuing operations up 23% to EUR 1,586 million. - Like-for-like sales growth of 8%, with like-for-like growth in all four divisions. - Operating profit from continuing operations(a) up 14% to EUR 102.2 million. - Like-for-like operating profit(a) growth of 6%. - Net debt reduced by EUR 159 million to EUR 563 million. OPERATIONAL HIGHLIGHTS - Integration of Hazlewood Foods into the Group is completed. - Disposal program proceeds of EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 230 million have exceeded target of EUR 190 million. - New product development and continuing positive market trends are driving growth, particularly in the Chilled chill n. 1. A moderate but penetrating coldness. 2. A sensation of coldness, often accompanied by shivering and pallor of the skin. 3. and Frozen division. - Good progress has been made in rationalizing the production capacity and distribution system of the UK bakery business. (a) before exceptional items and goodwill amortization. Note: The accounts reflect the inclusion of Hazlewood Foods for twelve months compared with nine months in the previous year. Commenting on the results, Greencore Group Chief Executive, David Dilger, said: "We are pleased with these results. Profit from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the has grown strongly, Hazlewood Foods has been fully integrated into the Group and the total proceeds from the disposal program have exceeded the announced target. The success of the disposal program, although earnings dilutive in the short term, has sharply improved the strategic direction and focus of the Group. In addition, the Group's indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. has been substantially reduced as a result of the strong operating cashflow of the continuing operations and the proceeds from disposals. "We have made a solid start to the new financial year, a platform for continued growth into the future has been established and I confidently look forward to reporting future progress." RESULTS Sales from continuing operations increased by 23% from EUR 1,289 million to EUR 1,586 million, with strong like-for-like sales Like-for-Like Sales The portion of current sales achieved through activities that are comparable to the activities of the previous year. Notes: Using like-for-like sales is a method of valuation that attempts to exclude any effects of expansion, acquisition, or other growth in all four divisions of the Group and overall like-for-like growth of 8%. This reflects the continued growth in the convenience food businesses which now comprise the majority of the Group's portfolio, along with excellent performances in the Group's more traditional businesses, particularly malt and the agribusinesses. Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. from continuing operations(b) also showed a strong increase, advancing by 14% from EUR 89.8 million to EUR 102.2 million, with like-for-like growth of 6%. Adjusted earnings per share were 29.4c (2001: 30.4c), reflecting primarily the dilutive impact of the disposal program. In light of the Board's desire to reduce further the debt level arising from the acquisition of Hazlewood, a final dividend of 8.25c is proposed, making a total for the year of 12.63c, which is in line with last year. DIVISIONAL HIGHLIGHTS - The Chilled and Frozen division again achieved an excellent result, with operating profit from continuing operations(b) up 60% to EUR 41.2 million. Like-for-like sales(c) grew by 9%. Strong performances at sandwiches and ready meals, along with good progress in the other businesses, more than offset the adverse effects of the commissioning delay at the new chilled pizza facility. - The Ingredients division was impacted by the decline in profitability in Irish Sugar, with operating profit from continuing operations(b) down 12% to EUR 38.4 million. Nonetheless, the malt and flour flour, finely ground, usually sifted, meal of grain, such as wheat, rye, corn, rice, or buckwheat. Flour is also made from potatoes, peas, beans, peanuts, etc. Usually it refers to the finely ground and bolted (i.e. businesses both enjoyed strong profit growth. Like-for-like sales grew by 6%. - The Ambient Surrounding. For example, ambient temperature and humidity are atmospheric conditions that exist at the moment. See ambient lighting. Grocery division increased operating profit from continuing operations(b) by 6% to EUR 17.0 million, and like-for-like sales(c) grew by 7%. Difficult market conditions at the UK bread business and commissioning delays in the new cake and desserts facility were more than offset by the inclusion of the acquired Hazlewood businesses for a full year and good performances at the mineral water and ambient sauces businesses. Significant steps have been taken to improve the performance of the UK bread business. - The Agribusiness agribusiness Agriculture operated by business; specifically, that part of a modern national economy devoted to the production, processing, and distribution of food and fibre products and byproducts. division increased operating profit from continuing operations(b) by 24% to EUR 5.6 million, with the businesses benefiting from ongoing reductions in the cost base and a recovery in market share lost in 2001. Like-for-like sales grew by 14%. (b) before exceptional items and goodwill amortization. (c) adjusted to exclude the October - December 2001 sales from Hazlewood continuing businesses. DISPOSAL AND RESTRUCTURING restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). PROGRAM The acquisition of Hazlewood Foods provided the Group with significant growth prospects, as demonstrated by the financial performance from continuing operations in the last financial year. To enable the Group to take advantage of these improved prospects, a substantial disposal and restructuring program was undertaken. During the last financial year, eleven further businesses were sold, as well as 50% of the flour milling business, Odlums; in addition, three businesses were closed. Disposal proceeds of EUR 130 million were generated in the period, bringing total proceeds from the disposal program to EUR 230 million, versus the initial target of EUR 190 million. In total, twenty-two businesses have now been sold and a further four closed. The diverse spread of businesses and accompanying structures in Hazlewood has been substantially reduced since the acquisition. Businesses exited include paper towels, horticulture horticulture [Lat. hortus=garden], science and art of gardening and of cultivating fruits, vegetables, flowers, and ornamental plants. Horticulture generally refers to small-scale gardening, and agriculture to the growing of field crops, usually on a large , cured meats cured meat meat which has been treated with salt and nitrate or nitrite. The salt dehydrates the meat, the nitrate releases nitrous acid which converts myoglobin to nitrosomyoglobin which has an attractive pink color when cooked. , vinegar vinegar, sour liquid consisting mainly of acetic acid and water, produced by the action of bacteria on dilute solutions of ethyl alcohol derived from previous yeast fermentation. , nappies and fish. Significant savings have been made to the cost base and the Group is now very well advanced in achieving the synergies targeted pre-acquisition. The recently announced closure of the remaining UK divisional structures and the transfer in-house In-house In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. later in the year of the pizza crust crust Outermost solid part of the Earth, essentially composed of a range of igneous and metamorphic rock types. In continental regions, the crust is made up chiefly of granitic rock, whereas the composition of the ocean floor corresponds mainly to that of basalt and gabbro. requirement of the chilled pizza business should result in the target being exceeded. OUTLOOK The Group is well positioned to achieve further good growth from continuing operations in the current financial year, which has got off to a solid start. The convenience food businesses in the Chilled and Frozen division continue to progress well, in line with consumer demand for fresh prepared food which is both convenient and of high quality. Whilst the chilled pizza operation continues to improve efficiencies at its new facility, much remains to be done. In the Ingredients division, the outlook for the international malt market is favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. and the processing campaign at Irish Sugar has been satisfactory to date. In Ambient Grocery, Christmas cake production has been manufactured on schedule and on budget, whilst additional post-Christmas trade is necessary to deliver satisfactory returns. It is anticipated that the rationalization rationalization, in psychology: see defense mechanism. of production capacity and distribution systems at the UK baked goods business, combined with new speciality product introductions, will lead to improved results in the current year, although volumes remain under pressure. Continued reduction in indebtedness will lead to a substantial reduction in interest payments. We confidently look forward to another year of good progress.
OPERATIONAL REVIEW
Chilled and Frozen Division
2002 2001 % Change
EUR m EUR m
Turnover (Continuing Operations) 673.8 492.6 +37%
Operating Profit (Continuing Operations)(d) 41.2 25.8 +60%
Operating Margin % 6.1% 5.2%
((d) before goodwill amortization and exceptional items)
Sandwiches The Group is the world's leading producer of sandwiches. The business had another excellent year, with sales and profits growing strongly. It increased its market leadership of the UK multiple sector, with its share growing from 27% to 30%, as the business grew at twice the rate of overall market growth. Its success was driven by excellent new product development, two state-of-the-art facilities and the radial radial /ra·di·al/ (ra´de-al) 1. pertaining to the radius of the arm or to the radial (lateral) aspect of the arm as opposed to the ulnar (medial) aspect; pertaining to a radius. 2. distribution business, which provides a unique advantage in the fast growing garage forecourt business. The business expanded its share of its existing retail customer base and added a number of new customers, whilst also expanding into other channels. In total, 350 new products were launched during the period. The strong growth over the last decade in the UK sandwich market is forecast to continue, with product availability and quality constantly improving and the lifestyle changes underpinning un·der·pin·ning n. 1. Material or masonry used to support a structure, such as a wall. 2. A support or foundation. Often used in the plural. 3. Informal The human legs. Often used in the plural. this growth continuing unabated un·a·bat·ed adj. Sustaining an original intensity or maintaining full force with no decrease: an unabated windstorm; a battle fought with unabated violence. . Ready Meals Ready meals built on the progress made in the previous year, with another improvement in performance. Hazlewood, at the time of its acquisition by Greencore, operated seven ready meal facilities in various subsectors of the chilled and frozen market, all of which were loss making. The ready meals division now operates three facilities and is generating good levels of profit. The chilled ready meal market in the UK grew by 18% during the year, with the Italian subsector growing by 13%. As the facilities are close to full capacity levels (the business produced 40 million meals last year) and the market is forecast to grow by a further 15% per annum Per annum Yearly. over the next four years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time Group has approved a staged expansion plan at two facilities over the next four years at a total cost of EUR 30 million. Chilled Pizza The Group's chilled pizza business had a challenging year, although substantial progress was made. Whilst the transfer of product from the Bedford bakery to the new Deeside bakery proved to be slower than initially anticipated, all product was transferred before the end of September and the Bedford facility has now been closed. As a consequence of the delay, efficiencies did not increase as quickly as had been expected at the outset, and double running costs running costs npl [of business] → gastos mpl corrientes [of car] → gastos mpl de mantenimiento running costs npl [of business (i.e. at Bedford and Deeside) were incurred for six months longer than originally planned. Under the new leadership of Peter Woodall, the business is confident of improved returns in the current year. The market continues to experience double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" annual growth, whilst the business now operates out of a state-of-the-art facility where, although much remains to be done, efficiencies are improving on a weekly basis. Chilled Sauces The Group maintained its clear leadership of the dynamic chilled sauce category. New product development remained at the core of the success of this business, with 65 new products introduced during the period, including new fish sauce fish sauce n. See nuoc mam. , meat sauce, vegetable sauce and pasta While the only basic difference between these names is the shape of the pasta, each pasta is typically matched with a particular sauce based on cooking time, consistency, ability to hold sauce, ease of eating, etc. sauce ranges. In addition, following investment during the year, the business has expanded into the fast growing chilled soup market, where it has recently started supplying two leading UK retailers. OPERATIONAL REVIEW Chilled and Frozen Division Chilled Quiche quiche n. A rich unsweetened custard pie, often containing ingredients such as vegetables, cheese, or seafood. [French, from German dialectal Küche, diminutive of German Kuchen, cake The chilled quiche business made further good progress during the year at the new bakery at Kiveton, which is the largest and most efficient quiche facility in the UK. The sector grew by 11% in the year despite a relatively poor summer, as quiche household penetration in the UK increased by 7%. However, Kiveton sales declined by 4% as the business deliberately reduced its promotional activity of the previous year. This strategy resulted in significant efficiency improvements, with profitability benefiting accordingly. As the UK quiche market continues to grow, with an increasing emphasis on premium products, and as the business expands its related product base such as tarts and flans Flans is a Mexican pop music group, which enjoyed great popularity from the mid-1980s to early 1990s. Its members were female singers Ivonne Margarita Guevara García, Ilse María Olivo Schweinfurth and Irma Angélica Hernández Ochoa, "Mimí"; they're usually referred to by their first , a year of further progress is expected. Continental Chilled The Continental chilled operations, based in the Netherlands, made good progress during the year. The chilled pizza operation is the Benelux market leader and has grown sales by in excess of 30% over the last two years. During the year, it completed a EUR 3 million investment in a new production hall which will provide additional necessary capacity to service Continental market growth. Sandwich sales in the Netherlands continued to grow strongly, and have grown by 50% over the last two years. An investment of EUR 1 million has been approved for the Group's Dutch sandwich operations to increase capacity to service this growth. Production for chilled sauce customers on the Continent has been moved to the Netherlands, where, from a small base, sales are growing strongly. Frozen Savoury and Desserts Roberts experienced good growth in both the savoury and desserts sector, with profitability increasing accordingly. Further investment was made to accommodate the fast growing single portion dessert business, and more progress is anticipated in the current year. Disposals The businesses disposed dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. of during the year included a UK pastry pastry, general name for baked articles of food made of paste or having paste as a necessary ingredient. The name is also used for the paste itself. The essential elements of paste are flour, liquid (usually milk or water, sometimes beaten egg), and shortening. business, a Dutch cured meat operation and fish processor, the Pann Krisp ready meal businesses and the Group's Australian pizza business.
OPERATIONAL REVIEW
Ingredients Division
2002 2001 % Change
EUR m EUR m
Turnover (Continuing Operations) 449.0 424.3 +6%
Operating Profit (Continuing Operations)(e) 38.4 43.5 -12%
Operating Margin % 8.6% 10.3%
((e) before goodwill amortization and exceptional items)
Sugar Irish Sugar's profitability declined due to an increase in beet beet, biennial or annual root vegetable of the family Chenopodiaceae (goosefoot family). The beet (Beta vulgaris) has been cultivated since pre-Christian times. prices, the shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down of the two factories during the related dispute with beet growers and significant cost inflation, most particularly in insurance. In the second half of the year, the Company recovered some of these cost increases through a modest sugar price increase. In the current financial year, Irish Sugar will benefit from a full year impact of this price increase and the stability provided by the five year agreement entered into with the Irish Farmers Association, although there will be a further beet price increase of EUR 0.50 per ton and a reduction in sugar quota quota In international trade, a government-imposed limit on the quantity of goods and services that may be exported or imported over a specified period of time. Quotas are more effective than tariffs in restricting trade, since they limit the availability of goods rather of 7,052 tons, as recently announced by the EU. In addition, a four-year flexibility and change program, which would substantially reduce manning levels and improve unit costs, is targeted to be introduced this year. Malt The malt division increased its profitability, as both malt production and deliveries reached record levels. Five of the division's eleven plants produced record volumes, including the two largest plants (Bury St Edmunds Coordinates: Bury St Edmunds is a town in the county of Suffolk, England, and was formerly the county town of West Suffolk. It is also the seat of the East of England Regional Assembly. and Athy). In conjunction with strong cost management, the increased volumes had the effect of reducing overall unit costs for the year. In addition, a successful de-stocking strategy was introduced, with the average Group stock holding level of 3.3 weeks falling below the target of a maximum of 4 week stock levels. Domestic and export malt margins for the UK operation continued to improve, whilst the rationalization of the branch network and other cost reductions further improved the competitiveness of the Irish business. The year also had the benefit of the first revenues earned by Rusmalt, the joint venture for the supply of management services in the procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. of raw materials and development of capacity and quality enhancement for Sun Interbrew in the Russian market. In the current selling season, the capacities of the Irish and Belgian operations are almost fully sold for the year, whilst the UK sales are well underway. International demand and supply is more favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. aligned than has been the case for a number of years. Trading is and will continue to be influenced by the worldwide barley barley, annual cereal plant (Hordeum vulgare and sometimes other species) of the family Gramineae (grass family), cultivated by humans probably as early as any cereal. supply and demand situation, with poor harvests in both Canada and Australia. Sales to date are fully covered by barley purchases, the Group is satisfied with the margin achieved, and is confident about the overall outcome for the financial year. Flour and Oatmeal Odlums enjoyed a very strong performance in the year. The closure of the mills of its principal domestic competitor in the early part of the year resulted in the business winning a number of new customers and producing to the full capacity of its mills. It also benefited from a number of successful retail product launches, including flavor extensions to the successful quick bread range and a new fortified fortified (fôrt  ´fīd),adj containing additives more potent than the principal ingredient. oatmeal product launched under the growing McCann's brand in the US. The Group sold 50% of Odlums in the year and it has been reported as an associate since April 2002. Edible Oils Trilby Trading, Ireland's leading importer and merchandiser of edible oils, performed satisfactorily in the year.
OPERATIONAL REVIEW
Ambient Grocery Division
2002 2001 % Change
EUR m EUR m
Turnover (Continuing Operations) 368.5 289.8 +27%
Operating Profit (Continuing Operations)(f) 17.0 16.0 +6%
Operating Margin % 4.6% 5.5%
((f) before goodwill amortization and exceptional items)
Ambient Sauces The ambient sauce and pickles Pickles may refer to
In addition to benefiting from the high single digit A single character in a numbering system. In decimal, digits are 0 through 9. In binary, digits are 0 and 1. digit - An employee of Digital Equipment Corporation. See also VAX, VMS, PDP-10, TOPS-10, DEChead, double DECkers, field circus. annual market growth which is forecast for the UK ambient sauce market, the business has also won a number of significant co-packing contracts from multi-national branded manufacturers, continuing long-term relationships which have been developed over a number of years. Bread and Baked Goods Rathbones experienced a difficult trading year. Although the roll and hotplate market continued to grow, conditions in the UK private label sliced bread Sliced bread usually refers to a loaf of bread which has been pre-sliced and packaged for convenience. History Otto Frederick Rohwedder of Davenport, Iowa invented the first loaf-at-a-time bread-slicing machine. market remained unfavorable, with volumes continuing to be under pressure and branded manufacturers increasing their market share. Rathbones was already the lowest cost producer in the sector; however, additional steps have been taken to reduce the cost base further and improve the competitiveness of the business and, although volumes in the new financial year remain under pressure, the Group is hopeful that improved results will be delivered in the current year. Capacity is being reduced, arising from the closure and sale of the Milton Keynes Milton Keynes (mĭl`tən kēnz`), town (1991 pop. 36,886) and borough, S central England. Milton Keynes was designated one of the new towns in 1967 to alleviate overpopulation in London. It is the seat of the Open Univ. bakery, which will have ceased all production by early in the new year, and the conversion of a bread plant at the Wigan Wigan (wĭg`ən), city (1991 pop. 88,725) and metropolitan district, N England, located in the Manchester metropolitan area on the Douglas River. bakery to a roll plant. These two steps will reduce the sliced bread capacity and the cost base of the business. Rathbones' distribution system has also been rationalized, with a reduction in the number of routes and the closure of the Rotherham distribution depot. The business now supplies a number of customers in the fast-growing UK sandwich market. It continues to grow its speciality offering with ongoing new product introductions, although this will be impacted by the destruction by fire of one of its two hot plate bakeries after the year end. Mineral Water Campsie, the Group's Scottish mineral water business, performed strongly, with double-digit sales growth for the fourth year in succession. Several successful new products were introduced, including a sports cap range. Investments during the year included further blow-moulding equipment on-site. Despite the impressive historic growth record of the category, annual consumption in the UK remains at less than 30 liters per capita [Latin, By the heads or polls.] A term used in the Descent and Distribution of the estate of one who dies without a will. It means to share and share alike according to the number of individuals. , versus 100 liters in Continental Europe Continental Europe, also referred to as mainland Europe or simply the Continent, is the continent of Europe, explicitly excluding European islands and, at times, peninsulas. . Demand in the UK is forecast to grow by 10% annually over the next four years, and Campsie remains well placed to benefit from this. OPERATIONAL REVIEW Ambient Grocery Division Speciality Cakes and Desserts Delayed commissioning of the new large-scale bakery at Hull, into which the trade from four smaller sites has been transferred, led to operating inefficiencies in the earlier part of the financial year and a delay in commencing the production of last year's Christmas cake trade. Performance has since improved, driven by a significant cost reduction exercise in the new year and additional customer listings. This year's Christmas cake requirement has been manufactured on schedule and on budget and, in a growing market with a state-of-the-art facility, the additional post-Christmas trade necessary to deliver satisfactory returns at this business should be obtained. The Group experienced further strong growth in the chilled hot eating desserts category, with year-on-year sales growth of 18% as two smaller competitors exited from the sector. Disposals During the year, the Group disposed of its Irish nappy manufacturer, its UK vinegar operation, Erin Foods and William Rodgers.
OPERATIONAL REVIEW
Agribusiness Division
2002 2001 % Change
EUR m EUR m
Turnover (Continuing Operations) 94.4 82.4 +14%
Operating Profit (Continuing Operations)(g) 5.6 4.5 +24%
Operating Margin % 5.9% 5.5%
((g) before goodwill amortization and exceptional items)
Drummonds showed a good improvement in profitability, notwithstanding the impact of the EU decision to reduce the levy on grain imports from the Baltic and Black Sea regions in October 2001, when Drummonds had purchased over 85% of its harvest intake. The wet summer months resulted in a reduction in grass seed sales and an increase in sales of cereal cereal or grain Any grass yielding starchy seeds suitable for food. The most commonly cultivated cereals are wheat, rice, rye, oats, barley, corn, and sorghum. As human food, cereals are usually marketed in raw grain form or as ingredients of food products. and potato fungicides This page aims to list well-known chemical compounds, to stimulate the creation of Wikipedia articles. This list is not necessarily complete or up to date – if you see an article that should be here but isn't (or one that shouldn't be here but is), please update the page , whilst the increase in winter wheat winter wheat n. Wheat planted in the autumn and harvested the following spring or early summer. sowings lead to improved sales of both chemicals and fertilizer fertilizer, organic or inorganic material containing one or more of the nutrients—mainly nitrogen, phosphorus, and potassium, and other essential elements required for plant growth. to this sector. In addition, the business continued to reduce its cost base with the closure of three of its smaller and under-performing branches. Interchem enjoyed growth in both sales and profitability in the year, arising from increased market share, higher usage of cereal and potato fungicides and extensions to its animal health products range. Premier Molasses molasses, sugar byproduct, the brownish liquid residue left after heat crystallization of sucrose (commercial sugar) in the process of refining. Molasses contains chiefly the uncrystallizable sugars as well as some remnant sucrose. had a satisfactory year. Whilst the high international molasses price impacted the molasses inclusion rates in compound feeds, sales still advanced, in part, due to the heavy summer rainfall which resulted in poor grazing grazing, n See irregular feeding. grazing 1. actions of herbivorous animals eating growing pasture or cereal crop. 2. area of pasture or cereal crop to be used as standing feed. See also pasture. conditions and a higher demand for compound feeds. During the year, the Group disposed of Grassland grassland see grazing (2), pasture. Holdings, its fertilizer business. FINANCIAL REVIEW Net debt at September 27, 2002 was EUR 563.2 million, a reduction of EUR 159.5 million from the September 2001 figure and EUR 310.5 million from the March 2001 figure, which was the first reporting period after the Hazlewood acquisition. Net interest payable reduced from EUR 53.4 million to EUR 51.9 million, notwithstanding the inclusion for the entire period of the acquisition financing of Hazlewood. Net interest payable in the second half of the year was EUR 23.5 million, down from EUR 28.4 million in the first half of the year and EUR 33.0 million in the second half of the previous year. The exceptional cost within operating profit relates principally to start-up inefficiencies at the new pizza and cake facilities, redundancies from the elimination of Hazlewood's Continental divisional structure and the rationalization of the branch network of the Irish malt operation. The exceptional loss on disposals arises from the closure of the Rathbones bakery at Milton Keynes (net of the profit on the disposal of the site) and losses on the disposal of Grassland Holdings and part-disposal of Odlums; these were partially offset by profits on the sale of Erin Foods and William Rodgers and the Group's pizza operation in Australia. Capital expenditure in the year declined from EUR 84.4 million in 2001 to EUR 48.4 million, notwithstanding the completion of the pizza and cake facilities in the UK and the pizza facility in the Netherlands, and the commencement of the expansion of the UK chilled ready meal operations. The depreciation charge for the year was EUR 57.4 million. The tax charge of EUR 7.0 million on ordinary activities equates to an effective rate of 11%, up from 10% in the prior year. Greencore is a leading European convenience food and ingredients group. The Group has operations in Ireland, the United Kingdom, and Continental Europe. Greencore's ordinary shares trade in Dublin and London, and information can be accessed on Bloomberg under the symbols GNC GNC General Nutrition Centers GNC Gas Natural Comprimido (Argentina) GNC Guidance, Navigation, and Control GNC Grand National Championship (ATV racing) GNC Global Navigation Chart ID and GNC LN respectively and on Reuters under GNC.I and GNC.L. Additional information is available on Greencore's Internet site: www.greencore.ie. For tabular tab·u·lar adj. 1. Having a plane surface; flat. 2. Organized as a table or list. 3. Calculated by means of a table. tabular resembling a table. information, please contact Taylor Rafferty at (212)889-4350. |
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