The group announced its interim results today, the highlight of which was sales up to £444.9 million from £383.2m. It launched 450 new products and achieved growth across all its major business areas. Total operating profit was up five per cent to £20.3m and adjusted earnings per share improved nine per cent to 18.5p, from 17p last year.
Chairman Sir John Banham was pleased. "We have achieved solid sales growth and in a competitive market improved our operating profits," he said. "As well as the positive consumer dynamics, which continue to drive growth in our market sectors, the rise in the number of convenience stores owned by the multiple retailers will support further our growth in the UK."
The City reflected his upbeat mood with share prices recovering following yesterday's slide.
But there are still potential threats to the profitability of the company. Pressure on prices for whole-head produce, the raw materials for many of Geest's lines, as well as the squeeze from above being applied by the multiples could make life tough for Geest. There is no sign of this abating as the retail sector in the UK and across the Continent, where Geest also has a significant presence, continues to rationalise.
No comments yet