29th Jul 2024 09:47
(Alliance News) - Cranswick PLC on Monday said it delivered a strong performance in the first quarter of its financial year, amid an ongoing investment programme focused on growth and efficiency.
The Hull, England-based premium food producer said revenue in the first quarter that ended June 29 was 6.7% ahead of the same period last year, although the company did not disclose figures.
Cranswick said the company has befitted from easing input costs and strong volume growth, which reflected new business wins and a return to promotional activity across the customer base.
Premium product ranges performed particularly well, as did Pet Products, reflecting the supply deal with Pets at Home Group PLC announced in May 2023.
"Export sales volumes were strongly ahead but were offset by reduced pricing in the Far East and EU albeit there are early signs that Far East prices are starting to firm," Cranswick said.
With unsecured facilities totalling GBP250 million, the company "remains in a robust financial position" although net debt has expectedly risen to "modestly higher" levels from GBP99.4 million at year-end in March.
Chief Executive Officer Adam Couch commented: "Our continued capital investment programme, including integration of agricultural supply chains, will further enhance operating efficiency and support UK food security as we continue to deliver on our long-term growth strategy."
The company is progressing with the delivery of three earnings-enhancing capital projects. These include an expansion project at its Hull pork primary processing site and the fit-out of a new houmous facility in Worsley, Manchester. In addition, in the poultry business, Cranswick delivered two new facilities in Hull which will create headroom for further expansion within the category.
The company said its full-year expectations remain unchanged with management maintaining an optimistic outlook.
Cranswick shares were up 1.6% to 4,611.50 pence each in London on Monday morning.
By Elijah Dale, Alliance News reporter
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