29th Jul 2019 09:25
(Alliance News) - Food firm Cranswick PLC on Monday said exports to Asia have surged due to the African swine fever outbreak in the region, while it also has made a GBP44 million acquisition.
The highly contagious and deadly fever have devastated livestock herd, sending meat prices rocketing in China. In the first half of 2019, the size of China's pig herd shrank by 15%. Pork prices in June surged 21% on the year before.
This helped Cranswick's Asian export revenue come in "strongly" ahead year-on-year for the three months to June, the company reported, helping to lift group revenue for the quarter by 1.5% despite a strong comparative.
Cranswick is making good progress on a new GBP75 million poultry processing facility in Suffolk, England, it said, with commissioning due towards the end of its year ending March.
Chief Executive Adam Couch commented: "We have made a positive start to the year and our capital investment programme, which is building a platform for future growth, remains firmly on track.
"We continue to make pleasing progress on the new Eye poultry facility and our new continental products facility in Bury is now performing strongly and in line with the original business case."
Elsewhere, Cranswick has bought London-based continental and Mediterranean food processor and supplier Katsouris Brothers Ltd for GBP43.5 million, funded entirely from existing debt facilities.
Katsouris, in the year to June, registered adjusted earnings before interest, tax, depreciation, and amortisation of GBP6 million on revenue of GBP68 million.
Couch said: "I am delighted to announce the acquisition of Katsouris Brothers, a leading supplier of continental and Mediterranean food products. This acquisition strengthens our existing continental products business and broadens our offering in a number of fast-growing, plant-based, non-meat product categories.
"The family behind Katsouris Brothers has created long-lasting and sustained relationships with suppliers and the business has a strong customer base. We look forward to building on this and continuing to invest in the facilities and the team, over the years ahead."
Shares were 5.8% higher on Monday at a price of 2,724.00 pence each.
Related Shares:
Cranswick