Cranswick, the UK-based food manufacturer, saw its shares slide after issuing a warning on how a key margin metric could fare in the company’s upcoming financial year.
The meat products-to-sandwiches supplier said yesterday (7 February) its operating margin in its new financial year, which starts in April, “is likely to decline”.
Cranswick pointed to “the potentially challenging commercial landscape”, together with start-up and commissioning costs associated with a new poultry facility in eastern England.
Shares in Cranswick closed down more than 12% yesterday at GBP2,950 pence.
The warning came alongside a trading update for the third quarter of Cranswick’s current financial year.
Cranswick said “as expected” revenue fell 2% with “strong growth” in poultry and continental products offset by lower sales from other “pork-related” categories.
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The company the UK pig price had “continued to ease” during the period, ending the quarter 7% lower than at the same
stage last year. The decline was “being reflected in selling prices”, the company added.