up has sold its foodservice desserts business, Ministry of Cake, for £11 million, which includes an upfront cash consideration of £8 million. Reporting an increase in revenue and profit yesterday, Greencore chief executive Patrick Coveney said the convenience food group offloaded Ministry of Cake to become more streamlined, and focus on its main business — savoury convenience food.He stated that the deferred consideration of £3 million would be contingent on certain targets being met.
Greencore reported a 14% increase in operating profit to £37.2 million for the 26 weeks ended 28 March. Group revenue climbed 8%, or 9.3% cent on a like-for-like basis, to £619.8 million during this period.
Mr Convey attributed the growth to consumers buying more convenience foods for breakfast and lunch, as a result of economic recovery.
Speaking about the company, he said Greencore gave a "strong first half performance”, driving 18.6% earnings per share (EPS) growth." He also spoke of their plans to operate in the UK and US:
"Our strategy of focusing on the food to go market is working well in both the UK and the US."
Greencore yesterday announced plans to invest £30 million in its Northampton food-to-go factory; they recently announced also that they will build a similar facility in Quonset, Rhode Island. Mr Convey said:
"By this time next year we will have taken the capacity of our business in America from $350 million to $600 million."
