Coveney takes USA lead role in Greencore shake-up
- by Leona Burton
- in World Media
- — Mar 15, 2018
Shares in sandwich maker Greencore had dropped more than 29 per cent by midday today, after the firm warned on profits this morning.
Patrick Coveney, chief executive of the Dublin-based food group, which produces and supplies food retailers including Marks & Spencer and the Co-operative Group, said that he would take a "direct role in the strategic, organisational and commercial leadership of Greencore US".
Adjusted earnings per share are now expected to be between 14.7p and 15.7p in 2018, down from a range of 15.7p to 16.6p.
Greencore will end fresh food production at its loss-making Rhode Island site by March 25, and will retain it for repurposing.
More news: Results of Bihar, UP bypolls reflect anger against BJP: RahulGreencore boss Patrick Coveney is to split his time between the United Kingdom and the USA as the business announces a restructure of its U.S. operations and leadership.
But, it said the weak performance of its underutilised original sites in the first half of the year, "combined with the timing of new business contributions" and the current exchange rate, will impact its expected rate of U.S. profit growth for the year. This facility represents 4% of the firm's United States manufacturing footprint past year.
It added that it continued to make progress on its USA commercial pipeline, most particularly with its current large consumer packaged goods customers.
There is a chance EPS could be lower as two-thirds of earnings are anticipated to be delivered in the second half of the financial year.
More news: Snapchat Apologizes To Rihanna Over Advert Trivializing Domestic AbuseIt also said the weak performance of some of its under-utilised sites in the first half of this year, along with the timing of new business contributions and the current sterling-dollar exchange rates will reduce the expected rate of USA profit growth. The timing of these wins represents a delay versus previous expectations.
Chris Kirke, the outgoing CEO of Greencore US, is leaving the group to return to the United Kingdom and will work with Chuck Metzger - COO of Greencore US - and Patrick Coveney to ensure a smooth transition.
It said the one off cash costs of resetting the U.S. network and the management restructure are anticipated to be approximately GBP3m (US$4.1m).
Along with Patrick Coveney's increased involvement in the US - where he will now spend around half of his time - Chuck Metzger, COO of Greencore US, has assumed day-to-day responsibility for the US business and will report to Mr Coveney.
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