REG - Cranswick PLC - Q3 Trading Update and Acquisition of JSR Genetics

CranswickAnnouncement

21/01/2025 07:00

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RNS Number : 0235U  Cranswick PLC  21 January 2025

21 January 2025

 

Cranswick plc

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

 

 

Third quarter trading statement

and

Acquisition of JSR Genetics, a leading UK pig genetics business

 

Cranswick, a leading UK food producer, today provides an update on trading for
the 13 weeks to 28 December 2024.

 

Current trading

Strong revenue growth during the period was again underpinned by excellent
volume growth across our core UK food business, as customers and the UK
consumer continue to appreciate the affordability, value for money and
versatility of our core pork and poultry categories.  Our premium value-added
products performed extremely well, contributing to a record festive trading
period performance.

 

The Group's expanded pig farming and milling operations continue to contribute
positively and will be further strengthened by the acquisition of JSR Genetics
which we are announcing today and is set out in more detail below.

 

On 3 December 2024, we received the positive news that the China export
licence at our Norfolk primary processing facility had been reinstated after a
four-year hiatus.  A full range of products started being shipped to China
from early January.

 

Investment

Our substantial ongoing capital investment programme continues to add
capacity, drive automation and deliver efficiency improvements.  We are
accelerating the pace at which we deploy capital to drive attractive and
industry leading returns and we now expect full year capital expenditure to be
ahead of our previous guidance.

 

Acquisition

We have acquired the entire issued share capital of JSR Genetics Limited ('JSR
Genetics') from JSR Farms Limited.  The transaction includes
the pig genetics and pig farming operations of JSR Farms Limited.

 

JSR Genetics is a leading UK based pig genetics company, located in East
Yorkshire and is renowned for its innovative genetic solutions for cost
effective pig production.  Genetic improvement is centred around
sustainability and efficiency.  Extensive research and innovation deliver pig
genetics with a continuous improvement in production efficiency, meat quality,
animal health and robustness.  JSR Genetics is an
existing, long-standing, valued supplier to Cranswick.

 

Financial position

The Group remains in a robust financial position with committed, unsecured
facilities of £250 million providing comfortable headroom.

 

Outlook

Whilst we remain cautious about current market and wider geopolitical and
economic conditions, the outlook for the current financial year ending 29
March 2025 remains in line with current market expectations(*).

 

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

 

Capital Markets Day

The Group will hold a Capital Markets Day for analysts and institutional
investors in London on 20 March 2025.  More information on this event will be
provided in due course.

 

Preliminary results

The Company's next scheduled comment on trading will be the preliminary
results announcement for the 52 weeks ending 29 March 2025, on Tuesday 20 May
2025.

 

Adam Couch, CEO of Cranswick, commented:

"We have delivered a record Christmas trading period underpinned by
outstanding service levels and sector leading innovation across our festive
product range.  I would like to thank all our colleagues for their continued
dedication and support in delivering this excellent performance.

 

"I am delighted to announce the acquisition of JSR Genetics, a leading pig
genetics supplier and commercial pig producer based in East Yorkshire.
This acquisition increases the scale of our indoor pig production, further
securing supply for our customers' pork requirements.  The addition of an
integrated pig genetics supply chain will allow us to drive ongoing
improvements in production efficiency, meat quality, animal health and
robustness, for the long-term benefit of our customers and the UK consumer.

 

"As we look ahead to the new financial year, we will need to manage the
well-publicised inflationary pressures alongside wider economic uncertainty
and food security risks, but our business is in great shape, and we are well
placed to successfully manage the challenges that may lie ahead."

 

 (*)  Market expectations for adjusted profit before tax as at 21 January 2025 range
      between £189.0m and £195.1m.  The range reflects all published updated
      Broker analysis following release of our interim results on 26 November 2024.

 

Enquiries:

 Cranswick plc                                01482 275 000
 Mark Bottomley, Chief Financial Officer

 Sodali & Co                                  +44 207 100 6451
 Ben Foster / Louisa Henry / Flora Mackenzie  cranswick@sodali.com (mailto:cranswick@sodali.com)

 

Note to editors:

1.     Cranswick is a leading and innovative supplier of premium, fresh
and added-value food products.  The business employs over 15,000 people and
operates from 22 well-invested, highly efficient 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, 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 53 weeks to 30 March 2024 showed revenue of
£2,599.3m and profit before tax of £158.4m.  For more information go to:
www.cranswick.plc.uk (http://www.cranswick.plc.uk)

2.     At Cranswick, it is second nature for us to protect and nurture our
environment while supporting people and communities to thrive.  Guided by our
sustainability strategy, Second Nature, we have seamlessly integrated our
sustainability commitments into the core of our business model, which in turn
shapes our decision-making, culture, and actions.  For more information on
out Second Nature strategy, please visit: www.cranswick.plc.uk/sustainability
(http://www.cranswick.plc.uk/sustainability)

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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