REG - Cranswick PLC - Third quarter trading statement

CranswickAnnouncement

18/01/2024 07:00

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RNS Number : 0760A  Cranswick PLC  18 January 2024

18 January 2024

 

Cranswick plc

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

 

 

Third quarter trading statement

 

Cranswick, a leading UK food producer, today provides an update on trading for
the 13 weeks to 23 December 2023.

 

Current trading

The interim results announcement dated 21 November 2023 referenced that the
strong revenue and earnings growth delivered in the first half of the year had
continued through the start of the third quarter. Trading throughout quarter
three and particularly during the key Christmas trading period was stronger
than anticipated.

 

The Group's Adjusted Profit Before Tax for the year ending 30 March 2024 is
now expected to be ahead of the Board's previous expectations.

 

Strong revenue growth during the period was again underpinned by volume growth
across all four core UK food categories, as customers and the UK consumer
continue to appreciate the affordability, value for money and versatility of
our core pork and poultry categories.

 

The Group's expanded pig farming and milling operations, including the
recently acquired Elsham Linc business continue to contribute positively.

 

Investment

Our substantial ongoing capital investment programme continues to add
capacity, drive automation and deliver efficiency improvements.  Investment
also continues across our pig farming and feed milling operations with
self-sufficiency in UK pigs over 50 per cent.

 

On 8 January 2024 the Company signed an agreement to acquire the entire issued
share capital of Froch Foods Holdings Limited ("Froch Foods").  Froch Foods
is an added-value processor of predominantly pork and poultry related
products.  The agreed transaction which is subject to the usual regulatory
approvals is expected to complete on 19 January 2024.

 

Financial position

Positive cash generation continues to facilitate effective deployment of
capital at pace resulting in strong returns.  The Group remains in a robust
financial position with committed, unsecured facilities of £250 million
providing comfortable headroom.

 

Outlook

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.

 

Preliminary results

The Company's next scheduled comment on trading will be the preliminary
results announcement for the 53 weeks ending 30 March 2024, on Tuesday 21 May
2024.

 

Adam Couch, CEO of Cranswick, commented:

"The positive momentum generated through the first half of the year continued
through the third quarter.

 

"Trading in December was stronger than anticipated as we supported our
customers in the lead up to Christmas with exemplary service levels and an
innovative range of festive products.

 

"The passion, commitment and professionalism of our teams across the business
is a key ingredient in our ongoing successful performance and, again, I would
like to thank all our colleagues for their continued dedication and support."

 

Enquiries:

 

 Cranswick plc                            01482 275 000
 Mark Bottomley, Chief Financial Officer

 Powerscourt                              020 7250 1446
 Nick Dibden / Elizabeth Kittle           cranswick@powerscourt-group.com

 

Note to editors:

 

1.     Cranswick is a leading and innovative supplier of premium, fresh
and added-value food products.  The business employs over 14,750 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 52 weeks to 25 March 2023 showed revenue of
£2,323.0m and profit before tax of £139.5m. 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.

 

5.     This announcement contains information that qualified, or may have
qualified, as inside information for the purposes of Article 17 of the Market
Abuse Regulations (EU) 596/2014 (MAR).  The person responsible for making
this announcement is Mark Bottomley, Chief Financial Officer.

 

 

 

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