GNC Greencore Group Plc

RNS Number:1425Y
Greencore Group PLC
09 February 2006

                              GREENCORE GROUP PLC
                             ANNUAL GENERAL MEETING
                       CHAIRMAN'S SUPPLEMENTARY STATEMENT


At the Annual General Meeting of Greencore Group plc to be held today, the
chairman, Ned Sullivan, will make the following statement:

Greencore made significant progress in 2005.  Profits before tax, amortisation
and exceptional costs grew by 6.4%, headline earnings per share grew by 4.3%,
and the Group continued to demonstrate strong cash generation characteristics.

The Ingredients division, however, faced a particularly challenging market
environment in 2005.  The uncertainty surrounding the EU sugar regime and
significant over-capacity in EU malt markets led to a reduction in divisional
operating profits of 11.2% to Euro41.4m.  Management actions ensured that cash
generation continued to be strong.

The level of uncertainty and pricing pressure observed in European sugar markets
in 2005 has increased significantly in 2006 as processors position themselves
for the post reform marketplace.  This will impact negatively on the 2006
performance of the Ingredients division.  A consequence of the reformed EU Sugar
regime agreed last November is that neither sugar growing nor processing have a
long-term future in Ireland.  Greencore is planning for a 2006/2007 processing
campaign but our ability to do this is dependent on a number of factors,
including the certainty of a full beet crop and clarification on some important
regulatory issues.  The Greencore Sugar team is in active discussions to resolve
these issues and will make a final decision as soon as possible but in any event
by early March.  The outcome of these discussions will impact on divisional
profitability in 2006, but more significantly in 2007.

The Convenience Foods division, which represents nearly two thirds of the
Group's profits, performed strongly, with like-for-like profits up 16.4% to
Euro67.7m.  The Group competes in attractive categories and our strategy of
combining aggressive product innovation, broad channel exposure and 'Total
Lowest Cost' drove like-for-like sales growth of 7.5% and sustained healthy
margin performance.  This represents excellent progress and, with the division
now accounting for 62% of Group continuing operating profit, up from 56% in
2004, this division represents the future of Greencore.

Many of the positive trends observed in Convenience Foods in 2005 have continued
into 2006 and the division is performing well.  We expect to deliver above
market growth rates.  Against a background of demanding trading and input cost
environments, our strong market positions and execution skills are ensuring that
margins are maintained.

In summary, the Board is confident about the future prospects of the Group.
Whilst there will be significant change in the Ingredients portfolio in the near
term and a resulting impact on the profitability of that division, the current
performance and long term prospects of Convenience Foods provide cause for
optimism.  Over time, we expect to be able to exploit more fully our market
leading positions in Convenience Foods, with the business benefiting from an
increased focus and investment.


E.F. Sullivan
Chairman


09 February 2006


CONTACT:
Patrick Coveney, Chief Financial Officer       Tel: +353 1 605 1018 (up to 10am)
Billy Murphy/Joe Carmody, Drury Communications Tel: +353 1 260 5000
Mark Garraway/Anthony Parker, College Hill     Tel: +44 207 457 2020


                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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