# Cranswick make a positive start to the year

- Link: https://www.directorstalkinterviews.com/cranswick-make-a-positive-start-to-the-year/4121075509
- Published: 2022-08-01T10:09:18+01:00
- Author: Giles

**Cranswick plc** (LON:CWK), a leading UK food producer, this morning provided an
update on trading for the 13 weeks to the 25th of June 2022.

**Current trading**

Revenue in the 13 weeks to the 25th of June 2022 was 7.6 per cent ahead of the same
period last year. Excluding the contribution from acquisitions made in the prior
year, revenue on a like-for-like basis was 5.8 per cent higher, with strong growth
in our core UK market partly offset by expected lower export revenue.

UK revenue across all four food product categories was ahead year-on-year. Substantial
and widespread cost inflation continues to be proactively managed and mitigated 
through tight cost control and ongoing recovery.

Far East export sales were, as anticipated, lower than the same quarter last year
due to market prices falling from the elevated levels experienced over the previous
two years and the ongoing suspension of our Norfolk primary pork processing facility’s
China export licence. The China pig price has strengthened in recent weeks, albeit
still below the highs of 2019 and 2020.

Grove Pet Foods made a modest contribution to reported Group revenue during the 
quarter.

The UK pig price increased by 27 per cent during the period, reflecting the rapid
response to the sharp rise in feed prices with wheat and soya reaching all-time 
highs. With the support of our customers, we have reflected these higher input costs
in the price we pay to both our own farming operations and our third-party producers.

**Investment**

We continue to invest at pace across our asset base to support future growth and
further operating efficiencies.  Shortly before the FY22 year end, pre-production
trials started at our new £32 million Breaded Poultry facility in Hull, with full
commercial roll-out starting in the first weeks of this quarter. Initial interest
from retail, food service and Quick Service Restaurant customers has been strong.

**‘Second Nature’ [Sustainability](https://www.directorstalkinterviews.com/sustainability-green-stocks-news)**

We continue to make meaningful progress in delivering our Group-wide ‘Second Nature’
sustainability strategy. We ranked third overall in the recently published ‘Better
Food Index’^(#) and were the highest-ranking meat business. This index assesses 
the social, environmental, and economic performance of the UK’s 30 largest food 
companies.

**Financial position**

Net debt was moderately higher than the March 2022 year end position, reflecting
the Group’s ongoing capital investment programme and the impact of inflation on 
both biological assets and net working capital. The Group remains in a robust financial
position with committed, unsecured facilities of £250 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 plc, commented:_**
> _“We have made a positive start to the year notwithstanding the challenging operating
> conditions we continue to experience. 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._
> _“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.”_

**Interim results**

The Company’s next scheduled comment on trading will be the interim results announcement
for the 26 weeks ending 24th of September 2022, on Tuesday 22nd of November 2022.

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