REG - Cranswick PLC - First quarter trading statement

CranswickAnnouncement

01/08/2022 07:00

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RNS Number : 3423U  Cranswick PLC  01 August 2022

1(st) August 2022

 

Cranswick plc

("Cranswick" or "the Company" or "the Group")

 

 

First quarter trading statement

 

Cranswick, a leading UK food producer, today provides an update on trading for
the 13 weeks to 25 June 2022.

 

Current trading

Revenue in the 13 weeks to 25 June 2022 was 7.6 per cent ahead of the same
period last year.  Excluding the contribution from acquisitions made in the
prior year, revenue on a like-for-like basis was 5.8 per cent higher, with
strong growth in our core UK market partly offset by expected lower export
revenue.

 

UK revenue across all four food product categories was ahead year-on-year.
Substantial and widespread cost inflation continues to be proactively managed
and mitigated through tight cost control and ongoing recovery.

 

Far East export sales were, as anticipated, lower than the same quarter last
year due to market prices falling from the elevated levels experienced over
the previous two years and the ongoing suspension of our Norfolk primary pork
processing facility's China export licence.  The China pig price has
strengthened in recent weeks, albeit still below the highs of 2019 and 2020.

 

Grove Pet Foods made a modest contribution to reported Group revenue during
the quarter.

 

The UK pig price increased by 27 per cent during the period, reflecting the
rapid response to the sharp rise in feed prices with wheat and soya reaching
all-time highs.  With the support of our customers, we have reflected these
higher input costs in the price we pay to both our own farming operations and
our third-party producers.

 

Investment

We continue to invest at pace across our asset base to support future growth
and further operating efficiencies.  Shortly before the FY22 year end,
pre-production trials started at our new £32 million Breaded Poultry facility
in Hull, with full commercial roll-out starting in the first weeks of this
quarter.  Initial interest from retail, food service and Quick Service
Restaurant customers has been strong.

 

'Second Nature' Sustainability

We continue to make meaningful progress in delivering our Group-wide 'Second
Nature' sustainability strategy.  We ranked third overall in the recently
published 'Better Food Index'(#) and were the highest-ranking meat business.
This index assesses the social, environmental, and economic performance of the
UK's 30 largest food companies.

 

Financial position

Net debt was moderately higher than the March 2022 year end position,
reflecting the Group's ongoing capital investment programme and the impact of
inflation on both biological assets and net working capital. The Group remains
in a robust financial position with committed, unsecured facilities of £250
million providing comfortable headroom.

 

Outlook

The outlook for the current financial year remains in line with the Board's
expectations.

 

The Board is confident that continued focus on the strengths of the Company,
which include its long-standing customer relationships, breadth and quality of
products, robust financial position, and industry leading asset
infrastructure, will support the further successful development of the Group
during the current year and over the longer term.

 

 

Adam Couch, CEO of Cranswick, commented:

"We have made a positive start to the year notwithstanding the challenging
operating conditions we continue to experience.  Our capital investment
programme remains firmly on track as we build the platform to deliver our
long-term growth strategy and we continue to make meaningful progress in
delivering our Group-wide 'Second Nature' sustainability strategy.

 

"The professionalism and commitment of our colleagues across the business is
the foundation on which our successful performance is based and as always, I
would like to thank them for their continued dedication and support."

 

 

Interim results

The Company's next scheduled comment on trading will be the interim results
announcement for the 26 weeks ending 24 September 2022, on Tuesday 22 November
2022.

 

 (#) Tortoise Media' s 'The Better Food Index'
 (https://www.tortoisemedia.com/intelligence/better-food/) is a measure of the
 social, environmental and economic performance of the 30 largest food
 companies in the UK. It ranks the companies on their actions and commitments
 towards a fair and sustainable food system

 

 

.Enquiries:

 

 Cranswick plc                            01482 275 000
 Mark Bottomley, Chief Financial Officer

 Powerscourt                              020 7250 1446
 Nick Dibden / Chloe Retief               cranswick@powerscourt-group.com (mailto:cranswick@powerscourt-group.com)

 

Notes:

1.     Cranswick is a leading and innovative supplier of premium, fresh
and added value food products. The business employs over 13,300 people and
operates from 20 well invested, highly efficient production facilities in the
UK. Cranswick was formed in the early 1970s by farmers in East Yorkshire to
produce animal feed and has since evolved into a business which produces a
range of high quality, predominantly fresh food, including fresh pork,
poultry, convenience and gourmet products and pet food.  The business
develops innovative, great tasting food products to the highest standards of
food safety and traceability.  The Group supplies the major grocery multiples
as well as the growing premium and discounter retail channels.  Cranswick
also has a strong presence in the 'food-to-go' sector and a substantial export
business.  Results for the 52 weeks to 26 March 2022 showed revenue of
£2,008.5m and profit before tax of £129.9m. For more information go to:
www.cranswick.plc.uk (http://www.cranswick.plc.uk)

 

2.     Cranswick is committed to ensuring that its business activities are
sustainable from farm-to-fork.  Our ambitious sustainability strategy 'Second
Nature' has been developed to deliver our vision to become the world's most
sustainable meat business.  Find out more at: www.thisissecondnature.co.uk
(http://www.thisissecondnature.co.uk)

 

3.     This announcement is based on information sourced from unaudited
management accounts.

 

4.     This announcement contains certain forward-looking statements with
respect to the financial conditions, results of operations and businesses of
Cranswick. These statements involve risk and uncertainty because they relate
to events and depend upon circumstances that will occur in the future. There
are a number of factors that could cause actual results or developments to
differ materially from those expressed or implied by these forward-looking
statements. Nothing in this announcement should be construed as a profit
forecast.

 

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