Cranswick Regulatory News (CWK)

1 Feb 2008 07:01

Cranswick PLC01 February 2008 Cranswick plc ("Cranswick" or "the Company") - third quarter trading statement Total sales for the Company in the quarter to 31 December 2007 were £158m, anincrease of 18 per cent compared to the same period last year after adjustingfor the impact of the sale of the animal feeds business in May 2007. In the food division, turnover increased by 17 per cent compared with the sameperiod last year, which was pleasing given strong comparatives. Most productcategories showed double digit growth, with sausage and bacon performingparticularly well and benefiting from investment in additional capacity duringthe year. Production of premium bacon from the new factory at Sherburn-in-Elmetcommenced on schedule, enabling the high December demand to be met and baconactivities are currently being consolidated on to this site. Turnover in the pet division, which accounted for 6 per cent of total Companysales in the quarter, was up by 37 per cent following better bird food sales.The aquatics business is now fully operative at Chorleywood following a fire inDecember 2006. There has been significant raw material price inflation in thepet food business, most of which has now been passed on in the finished productprice. During the second half, the food division has suffered from some sales pricedeflation. Furthermore, the industry is experiencing rising input costs in pigmeat, beef and poultry. Whilst Cranswick is benefiting from higher than plannedvolume gains, it is currently proving difficult to pass on the full impact ofrising costs. Discussions on this are ongoing with customers. Assuming acontinuation of current conditions, the impact of these two factors, togetherwith the impact of the fall in the value of sterling on the charcuteriebusiness, is expected to have a modest negative impact on the results to 31March 2008. The Directors expect the effect of these issues in the current yearto be approximately matched by exceptional gains of around £1.8m. Whilst it is disappointing to be experiencing these pressures, which can beexpected to moderate the Company's growth rate, Cranswick is in a very strongposition to capitalise once equilibrium returns to input prices and sellingprices. Our market positions are strong, our plants are well invested, thebusiness is highly cash generative and we have excellent customer relationships. Enquiries: CityRoad Communications Paul Quade 020 7248 8010 (mobile 07947 186694) This information is provided by RNS The company news service from the London Stock Exchange