(Alliance News) - Cranswick PLC on Monday said that its outlook for its current financial year was ahead of prior expectations, after first quarter revenue improved.
Cranswick, a Yorkshire-based meat producer, said revenue in its first quarter ended June 24 was 14.7% ahead of the same period last year.
"UK revenue across all four food product categories was ahead year-on-year, underpinned by positive volume momentum in our fresh pork, convenience and gourmet products categories," said Cranswick.
Chief Executive Officer Adam Couch said: "We have made a strong start to the year, delivering another quarter of growth during which we have again supported our customers by providing excellent service levels to ensure full availability of our products.
Far East export volumes remained subdued, with Cranswick stating that this reflected the "seasonal slowdown in demand" in China.
The company noted that the UK pig herd contracted significantly in recent months with the advent of the Ukraine war, with the sustained tightening of supply resulting in pig prices rising by 28% compared to the same period the year before.
Cranswick said its net debt at the end of the quarter increased modestly from its year-end, with unsecured facilities of GBP250 million.
The company said it made a strong start into its second quarter, with UK demand remaining resilient.
"Whilst the board remains cautious about current market and wider conditions, the outlook for the current financial year ending March 30, 2024 is now expected to be ahead of its previous expectations," Cranswick said.
Shares in Cranswick were up 2.3% at 3,420.00 pence in London on Monday morning.
By Will Neill, Alliance News reporter
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Cranswick (CWK)