Third quarter trading statement

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	[e-mail]

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

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

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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