TIDMCWK
RNS Number : 3490G
Cranswick PLC
26 July 2021
26 July 2021
Cranswick plc
("Cranswick" or "the Company" or "the Group")
First quarter trading statement
Cranswick, a leading UK food producer, today provides an update
on trading for the 13 weeks to 26 June 2021.
Current trading
Revenue in the 13 weeks to 26 June 2021 was 9.6 per cent ahead
of the same period last year, with corresponding volumes up 7.7 per
cent reflecting strong retail demand and increased sales from the
Eye poultry facility. Revenue growth also reflected the gradual but
sustained recovery of the food to go and food service channel.
Far East export sales were well ahead of the same quarter last
year, reflecting strong market prices. The China export licence at
our Norfolk primary processing facility remains suspended; as
previously noted, whilst the technical audits were passed at the
site in January 2021, we still await final approval.
The UK pig price increased by 12 per cent during the period; the
average price across the quarter to June 2021 was 9 per cent below
that in the equivalent period a year earlier.
Investment
We continue to invest at pace across our asset base to support
future growth and further operating efficiencies. The capacity
uplift from 1.1m to 1.4m birds per week at the Eye poultry facility
was delivered successfully and, as anticipated, the new GBP20m
cooked bacon facility in Hull started commercial production during
the quarter. A further GBP5m will be spent at the facility over the
coming months to add additional capacity and capability. Work on
the new premium breaded poultry facility in Hull is progressing
well, with incremental investment of GBP5m, which includes a third
production line, added to what is now an overall GBP30m build
plan.
'Second Nature' Sustainability
We continue to make meaningful progress in delivering our
Group-wide 'Second Nature' sustainability strategy. During the
period six more of our sites were awarded the carbon neutral (IPAS
2060) certification. Nine of our sites have now gained the
accreditation, with all remaining production facilities on track to
achieve this status by the end of 2021.
We set exacting standards in animal welfare and our leadership
in this field was again recognised with confirmation on 30 March
2021 that we had retained our Tier 1 status in the Business
Benchmark on Farm Animal Welfare (BBFAW) for the fifth consecutive
year. The BBFAW is the globally recognised investor framework for
assessing the quality of companies' practices, processes and
performance on farm animal welfare. W e are one of only four
companies globally, and the only meat processor, to be ranked in
'Tier One'.
On 22 July 2021 we received confirmation that our Science Based
Target (SBT) has now been validated. Our challenging but achievable
SBT is set in line with efforts to limit global warming to 1.5 C
under the Paris agreement and includes halving our Scope 1, 2 and 3
emissions by 2030 and achieving Net Zero status by 2040.
Financial position
As a result of strong cash generation and tight working capital
management, net debt was only modestly higher than the March 2021
year end position. The Group remains in a robust financial position
with committed, unsecured facilities of GBP200 million providing
comfortable headroom.
Outlook
The outlook for the current financial year remains in line with
the Board's expectations.
The Board is confident that continued focus on the strengths of
the Company, which include its long-standing customer
relationships, breadth and quality of products, robust financial
position and industry leading asset infrastructure, will support
the further successful development of the Group during the current
year and over the longer term.
Adam Couch, CEO of Cranswick, commented:
"We have made a positive start to the year. Our capital
investment programme remains firmly on track as we build the
platform to deliver our long-term growth strategy and we continue
to make meaningful progress in delivering our Group-wide 'Second
Nature' sustainability strategy. We also continue to support our
customers by delivering excellent service levels to ensure full
availability of our products.
"The professionalism and commitment of our colleagues across the
business is the foundation on which our successful performance is
based and as always I would like to thank them for their continued
dedication and support.
"As announced on 18 May 2021, Martin Davey will stand down as
Chairman at the conclusion of this morning's AGM. He will though
stay with the business in an advisory capacity till May 2022.
Martin joined Cranswick 36 years ago and has been Chairman since
2004. Much of what Cranswick is today in terms of its culture and
ethos reflects Martin's character and personality. He has been an
inspiration, mentor, wise counsel and friend and on behalf of all
at Cranswick I would like to thank Martin for his invaluable
contribution over the last 36 years and to wish him, his wife Linda
and their family all the very best for the future."
Interim results
The Company's next scheduled comment on trading will be the
interim results announcement for the 26 weeks ending 25 September
2021, on Tuesday 23 November 2021.
Enquiries:
Cranswick plc 01482 275 000
Mark Bottomley, Finance Director
--------------------------------
Powerscourt 020 7250 1446
--------------------------------
Nick Dibden / Nick Hayns cranswick@powerscourt-group.com
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Notes:
1. Cranswick is a leading and innovative supplier of premium,
fresh and added value food products. The business employs over
12,900 people and operates from sixteen well invested, highly
efficient production facilities in the UK. Cranswick was formed in
the early 1970s by farmers in East Yorkshire to produce animal feed
and has since evolved into a business which produces a range of
high quality, predominantly fresh food, including fresh pork,
poultry, convenience and gourmet products. Through the Group's four
primary processing and twelve added value processing facilities the
business develops innovative, great tasting food products to the
highest standards of food safety and traceability. The Group
supplies the major grocery multiples as well as the growing premium
and discounter retail channels. Cranswick also has a strong
presence in the 'food-to-go' sector and a rapidly growing export
business. Results for the 52 weeks to 27 March 2021 showed revenue
of GBP1,898m and profit before tax of GBP114.8m. For more
information go to: www.cranswick.plc.uk
2. Cranswick is committed to ensuring that its business
activities are sustainable from farm-to-fork. Our ambitious
sustainability strategy 'Second Nature' has been developed to
deliver our vision to become the world's most sustainable meat
business. Find out more at: www.thisissecondnature.co.uk
3. This announcement is based on information sourced from unaudited management accounts.
4. 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.
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END
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