The meat firm’s like-for-like revenue increased 21% over the three months to June 30, it reported this week (July 24). Strong UK volume growth boosted Cranswick’s sales, it said.
Cranswick’s rising sales came as it invested heavily in its operations to increase capacity and capability, it reported. Further progress was made on its new Greater Manchester factory, which will consolidate production from two of Cranswick’s existing sites. Ongoing investment at its sites in Hull and Ballymena, Northern Ireland, will continue to boost pig processing capacity, Cranswick said.
Robust financial position
Net debt had been cut £4M to £18M during the three months, compared with the same period last year. Cranswick said it was in a robust financial position, with committed, unsecured facilities of £160M, providing further headroom.
A Cranswick statement said: “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 is confident in both the outlook for the current financial year, which remains unchanged, and the continued long-term success and development of the business.”
Cranswick continued to materially outperform in UK grocery, said city analyst Shore Capital, on the back of the meat processor’s rising sales. It described Cranswick’s sales as “stunning” and “outstanding”.
Shore Capital analysts Clive Black and Darren Shirley said: “Cranswick is a high class operator in our view, with well invested, industry leading manufacturing facilities and an ambitious management team.
“That we are able to upgrade expectations after just one-quarter of trading also demonstrates the self-confidence and improving earnings visibility across the group, in our view.”
Meanwhile, in May, it was reported that Cranswick was investing £4M in its County Antrim facility, in a bid to boost productivity.
Cranswick trading update – at a glance
- Revenue up 27%
- Like-for-like revenue up 21%
- UK volume growth drove sales rise