REG - Cranswick PLC - First quarter trading statement

CranswickAnnouncement

Mon 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250728:nRSb6977Sa&default-theme=true

RNS Number : 6977S  Cranswick PLC  28 July 2025

28(th) July 2025

 

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 28 June 2025.

 

Current trading

Trading in the first quarter of the new financial year has been strong, with
revenue ahead across all product categories year-on-year.  Group reported
revenue was 9.7 per cent ahead of the same period last year, with Blakemans,
which was acquired on 16 May 2025, making a positive contribution in line with
expectations.  Like-for-like(1) revenue was up 7.9 per cent, driven by strong
volume growth reflecting new business wins, closer alignment with key
strategic retail partners and continued outperformance of premium added-value
ranges with consumers' increasing appetite for natural protein as part of a
healthy balanced diet.

 

Export revenue was strong, reflecting both volume growth and higher pricing
following the reinstatement of the Norfolk fresh pork site's China export
license in December 2024.  Poultry revenue grew strongly driven by the
onboarding of new premium retail business at the Cooked and Prepared Poultry
sites together with strong demand from the Eye fresh poultry site's anchor
retail customer.  Pet Products revenue was well ahead reflecting the
successful ongoing roll out of the Pets at Home business.

 

We have further strengthened our relationship with Pets at Home with new
premium own-label business now secured, supply is due to begin later in the
year.

 

Investment

We are accelerating the pace of capital expenditure to add capacity, expand
capability, and drive operating efficiencies across our 23 production
facilities and extensive pig and poultry farming operations.  During the
period we made good progress on each of our major earnings enhancing capital
projects.  With new business secured, we have committed a further £14
million of investment at the Lincoln Pet Products site, to increase capacity
and broaden the product range.

 

Financial position

As expected, net debt at the quarter end was higher than the March 2025 year
end position reflecting cash spent on the Blakemans' acquisition, significant
capital investment and seasonal working capital expansion, partially offset by
strong free cash generation.

 

During the period the Group refinanced its banking facility on more favourable
terms.  The new agreement, which comprises a revolving credit facility of
£360 million, is unsecured, and runs to July 2029 with the option to extend
by a further two years.  A further £90 million can be accessed on the same
terms at any point during the term of the agreement.  The new facility
replaces the old £250 million revolving credit facility and provides
comfortable headroom to support future growth and investment.

 

Outlook

We have made a strong start to the year, delivering volume-led revenue growth
supported by a positive contribution from the newly acquired Blakemans
business.  Investment continues at pace across our farming operations and
primary and added value processing facilities in line with our recently
updated medium-term guidance.  Looking ahead, the outlook for the current
financial year ending 28 March 2026 remains in line with current market
expectations(2).

 

The Board remains 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
base, 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 strong start to the year, delivering volume-led revenue growth
across all product categories.  We continue to invest at pace across our
asset base to drive strong returns.

 

"In line with the commitments we made on 20 May 2025, we have further
strengthened our animal welfare compliance practices and checks. The
independent expert veterinarian led review of these policies and procedures is
well advanced, and we look forward to receiving its recommendations.  We will
provide a further update on this review in due course.

 

"Integration of the Blakemans business is progressing well and we have
committed to further substantial investment in the Lincoln Pet Products site.
 

 

"Our continued positive progress reflects the substantial ongoing investment
in our asset base and the quality and capability of our colleagues across the
business."

 

Interim results

The Company's next scheduled comment on trading will be the interim results
announcement for the 26 weeks ending 27 September 2025, on Tuesday 25 November
2025.

 

Enquiries:

 

 Cranswick plc                                01482 275 000
 Mark Bottomley, Chief Financial Officer

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

 

Notes:

1.     Like-for-like revenue references excludes the current year
contribution from current and prior year acquisitions prior to the anniversary
of their purchase.

2.     Market expectations for adjusted profit before tax as at 25th July
2025 range between £206.5m and £213.6m.  The range reflects all published
updated Broker analysis following release of our year end results on 20 May
2025.

3.     Cranswick is a leading and innovative supplier of premium, fresh
and added-value food products.  The business employs over 15,400 people and
operates from 23 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 29 March 2025 showed revenue of
£2,723.3m and profit before tax of £181.6m.  For more information go to:
www.cranswick.plc.uk

4.     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
our Second Nature strategy, please visit: www.cranswick.plc.uk/sustainability
(http://www.cranswick.plc.uk/sustainability)

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

6.     This announcement contains certain forward looking statements.  By
their nature, forward looking statements involve a number of risks,
uncertainties or assumptions that could cause actual results or events to
differ materially from those expressed or implied by those statements.
Forward looking statements regarding past trends or activities should not be
taken as representation that such trends or activities will continue in the
future.  Accordingly undue reliance should not be placed on forward looking
statements.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTFLFVLDAIRFIE