Interim Management Statement

RNS Number:9589N
Greencore Group PLC
14 February 2008


GREENCORE GROUP PLC

INTERIM MANAGEMENT STATEMENT AND CHAIRMAN'S ADDRESS TO THE ANNUAL GENERAL MEETING



GREENCORE GROUP PLC ("Greencore" or "the Group"), one of Europe's leading
convenience food and malt producers, today issues the following interim
management statement which the chairman, Ned Sullivan, will present at its
Annual General Meeting taking place in the Conrad Hotel, Earlsfort Terrace,
Dublin 2, at 11.00am today:



Greencore's portfolio performed very well in 2007, the first year following its
exit from sugar processing activities.  On a continuing basis, the Group
delivered a 22% improvement in operating profit (from EUR74.6m to EUR91.0m) and
a 50% increase in adjusted earnings per share (from 19.9 cent to 29.8 cent).
The progression in underlying earnings, together with a significant
strengthening of the Group's capital position (an increase of EUR99.4m in
shareholders equity year-on-year), has resulted in the Board recommending a
recommencement in dividend growth.



The Convenience Foods division performed well in the first half of FY07.
However, profit declined 16% in the critical second half period, primarily due
to the impact of unseasonal summer weather and strong raw material inflation in
the final quarter.  On a full year basis, turnover rose 4% to EUR933.1m and
operating profit fell 7% to EUR64.4m.  For the current financial year, managing
significant food inflation has become a key challenge for all players in the
global food industry.  To date, our Convenience Foods division has been
successful in working with customers to offset this impact (estimated to total
8-10% of our cost of goods).  Underlying consumer demand for our products held
up well in the first quarter, although there was some evidence of a limited
consumer slowdown in January.  Despite these impacts, we expect the successful
delivery of our strategic, operational and commercial initiatives to drive
strong growth (on a constant currency basis) in FY08, albeit with the
contribution of the second half of the year more pronounced than in prior years.



The Ingredient & Related Property division made considerable progress last year,
delivering operating profit from continuing operations of EUR26.6m, an increase
of 372% over the prior year.  The key driver was the strong recovery in all our
Ingredients businesses, but most especially in Greencore Malt.  This recovery
has continued through the first quarter of the current financial year, with
strong growth expected (on a constant currency basis) for the full year.



Last year, we made excellent progress in enhancing the zoning and planning
status at each of our four significant property assets in Mallow, Carlow, Athy
and Littlehampton.  We continue to work with the relevant local authorities to
deliver the full potential of these properties for both local communities and
shareholders.



In January 2008, the Irish Government informed the Group of its decision to
allocate 87.3% (representing a total of EUR127.0m) of EU restructuring aid to
Greencore.  This followed the Group's successful legal challenge of the
Government's original allocation decision of July 2006.  The revised allocation
will result in a final instalment of EUR83.4m to be paid at the end of February
this year, thereby further strengthening the Group's capital position.  The
Group will book an exceptional profit of at least EUR15m in its Interim Accounts
to reflect the increased value of the EU restructuring aid payable to Greencore
(EUR127.0m versus EUR112.1m disclosed in the 2007 financial statements).  We
continue to make good progress in the delivery of our restructuring plan, the
costs of which have already been accounted for in the 2007 financial statements.



Approximately 80% of total operating profit is expected to be delivered in
sterling (with revenues and costs similarly denominated) and the change in the
EUR/GBP exchange rate seen in recent months will impact the year-on-year
translation of our results.  If the EUR/GBP level were to continue in the 0.74
to 0.75 range for the rest of the current financial year, the translation effect
year-on-year would reduce Group operating profit by c. EUR8m, and profit before
tax by c. EUR6m.



Overall, we are happy with the outlook for the Group's portfolio in FY08 and
beyond.  While recognising that the second half of the year is a much more
significant contributor to Group profits, and allowing for the anticipated
currency translation effect, the Board remains comfortable with current market
expectations.



Finally, at this, his final AGM, I would like to pay tribute to the leadership
and achievements of David Dilger.  David has been chief executive since 1995
and, supported by the executive team that he has built, he has transformed
Greencore into one of Europe's leading convenience food producers.  In doing so,
he demonstrated vision, clarity of direction, a passion for our business and
unrelenting personal commitment.  He leaves behind a robust, well-positioned
business and a high performing business culture.  We are very grateful for his
contribution.





E.F. Sullivan

Chairman



14 February 2008









For further information, please contact:


Patrick Coveney
Chief Financial Officer | Chief Executive Officer Designate   +353 (0)1 605 1018

Eoin Tonge
Group Capital Markets Director                                +353 (0)1 605 1036

Billy Murphy or Anne Marie Curran
Drury Communications                                          +353 (0)1 260 5000

Rory Godson or Elizabeth Rous
Powerscourt                                                  +44 (0)20 7236 5615


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