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* Q1 revenue jump 24.8%
* Shares up 7%
* Says positive trend continued into Q2
(Adds shares, analyst comment, detail on outlook)
By Yadarisa Shabong
Aug 17 (Reuters) - Meat processor Cranswick Plc said
on Monday it expected retail demand to normalise in the rest of
the year as more people start dining out, after eating in during
lockdowns helped its revenue surge 25% in the first quarter.
The company, which owns farms and supplies pork and chicken
to British grocery retailers, also said outlook for the year
ending March 2021 was seen exceeding expectations, while capex
will be lower than last year.
Cranswick's shares were up 7% at 0737 GMT, taking gains for
the year so far to 20%.
Although Cranswick said the positive revenue trend had
continued into the second quarter, analysts at HSBC said they
expected the trend to have "normalised somewhat" in August as
Britons take advantage of the "eat out to help out" government
discount programme.
Cranswick also sells meat across continents, with exports
making up around 11% of revenue last year, and the company has
benefited from increased prices and demand from the Far East as
Chinese pig herds recover from African swine fever.
"Whilst we remain cautious about the longer-term economic
impact of COVID-19 and the uncertainty surrounding the ongoing
Brexit negotiations, we are well positioned to address these
challenges," said Chief Executive Officer Adam Couch.
Concerns about new outbreaks stemming from contaminated food
shipments have surfaced after authorities last week said two
Chinese cities found traces of the new coronavirus in imported
frozen food and on food packaging.
The company said safety measures introduced in March, such
as social distancing, personal protective equipment and
additional cleaning and hygiene standards, are well embedded and
have enabled all sites to remain fully operational.
The producer of bacon, sausages, fresh pork and chicken said
its food-to-go sector had been severely hit by the pandemic, but
robust retail demand has countered that impact.
(Reporting by Yadarisa Shabong in Bengaluru; editing by
Uttaresh.V)
