26th Nov 2019 09:13
(Alliance News) - Meat producer Cranswick PLC on Tuesday reported a surge in exports, especially to Asia, due to African Swine Fever outbreak in the region.
China and some neighbouring countries have been grappling with an outbreak of the disease since August 2018, which has led to large number of pigs, at least over one million, being culled. Earlier in November, data showed the price of pork in China more than doubled year-on-year in October.
Cranswick's revenue for the six months to September climbed 7.1%, and 5.4% like-for-like, to GBP770.0 million. Pretax profit was 11% higher at GBP47.4 million. Adjusted pretax profit climbed 3.6% to GBP46.4 million.
Export revenue increased by 65%, with export revenue to the 'Far East' just shy of double the prior year, while Kingston-upon-Hull-based Cranswick said performance in the UK was "robust" in a competitive market.
"Although conditions in our core UK market remain extremely competitive, the outbreak of African Swine Fever in our Far Eastern export markets has created the opportunity to increase sales into this region on commercially favourable terms," said Cranswick.
"We anticipate this opportunity may continue in the medium term provided the UK remains ASF free."
Cranswick has increased the interim payout by 5% to 16.7 pence per share.
Overall, the firm said it was a "positive" start to the year, with revenue growth "good" and "substantial" strategic progress achieved.
Looking ahead, Cranswick said: "The board is encouraged by the continued commercial and strategic progress made by the company and, with commissioning of the new poultry facility due to be completed by the financial year end, looks to the future with confidence."
Shares were 2.2% higher on Tuesday morning in London at a price of 3,278.00p each.
By George Collard; [email protected]
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