Last checked at 28 Jan 2016 07:00
28 January 2016
Cranswick plc
("Cranswick" or "the Company" or "the Group")
Third quarter trading statement
Cranswick, the UK food producer, today provides an update on trading for the three months to 31 December 2015.
Current trading
Trading during the third quarter of the financial year was in line with the Board's expectations.
Total revenue in the three months to 31 December 2015 was 5% ahead of the same period last year, driven by strong volume growth of 11% and underpinned, as anticipated, by another strong Christmas trading period.
Underlying revenue* was 4% higher than the same period last year, with corresponding volumes up 10% as the benefit of falling input prices was again passed on to the Group's customers. Export sales grew strongly, with volumes shipped to the Far East 28% ahead of the same quarter last year.
Investment
The Group continues to invest heavily across its asset base to increase capacity and drive further operating efficiencies.
Financial position
Following the expected seasonal increase in working capital and ongoing capital expenditure, net debt increased from £5 million to £18 million during the quarter, well below the £57 million reported at the same stage last year. The Group is in a sound financial position with committed, unsecured facilities of £120 million, providing significant headroom.
Outlook
Cranswick continues to work closely with its customers and to maintain its focus on service, quality and innovation to deliver exciting, competitively priced products in market conditions that are expected to remain competitive through the remainder of the financial year.
With experienced management at all levels of the Group, a strong range of products, a well-invested asset base and a robust financial position, the Board remains confident in the continued long term success and development of the business.
Enquiries:
Cranswick plc | 01482 372 000 |
Mark Bottomley, Finance Director | |
Powerscourt | 020 7250 1446 |
Nick Dibden / Sophie Moate / Samantha Trillwood | cranswick@powerscourt-group.com |
Notes:
1. Cranswick's activities are focused within the UK and include the processing and supply of fresh pork, sausage, bacon, cooked meats, premium cooked poultry, charcuterie, pastry products and sandwiches. Products are primarily supplied into the UK food retail, food service and food manufacturing sectors. Results for the year to 31 March 2015 showed revenues of £1,003m and profit before tax of £52.8m.
2. This announcement is based on information sourced from unaudited management accounts.
3. 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.
* Underlying revenue in both the current and prior financial years excludes the contribution from Benson Park prior to 22 October and sales from the pig breeding, rearing and trading activities