UK meat processor Cranswick has reported a rise in revenues for the third quarter.
The group issued a trading statement today (28 January) and advised total revenue in the three months to 31 December was 5% ahead of the same period last year. It attributed this to “strong volume growth of 11% and … another strong Christmas trading period”.
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Underlying revenue excluding the contribution from Benson Park prior to 22 October and sales from the pig breeding, rearing and trading activities was up 4%. The group said volumes benefited from falling input prices whose effect was passed on to customers and strong export sales.
The group added that it would continue to “invest heavily across its asset base to increase capacity and drive further operating efficiencies”.
Shore Capital analyst Darren Shirley said major projects for Cranswick that remain ongoing include the GBP8m (US$11.4m) upgrade to the Norfolk plant and a GBP11m efficiency drive at Sutton Fields, Milton Keynes and Valley Park.
“Cranswick continues to materially outperform the broader UK grocery market, where volume growth over the equivalent period was low-single digit at best,” said Shirley.
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By GlobalData“We continue to see Cranswick as a premium company in both UK food processing and also the broader mid-cap arena, with a young and ambitious management team and best in class well invested facilities and infrastructure. The combination of which, in our view, leaves the group well positioned to drive medium-long term earnings growth, continued robust cash generation, high teens return on capital employed and ultimately attractive shareholder returns,” he added.
Earlier this month Cranswick added to its range of branded meat products on sale in the UK with the launch of the Welly brand.
