Cranswick PLC on Monday said that revenue rose during the first quarter of its current financial year, as the meat producer responded to cost pressure with price increases of its own.
The Hull, England-based firm provided the trading update ahead of its annual general meeting on Monday.
Revenue in the 13 weeks to June 25, Cranswick’s first quarter, was 7.6% higher year-on-year. On a like-for-like basis, excluding newer acquisitions, revenue was up 5.8% with strong growth in the core UK market partly offset by lower export revenue.
Cranswick added that UK revenue across all four product categories was ahead of last year’s results, but it continues to battle against cost inflation through tight cost control and price increases for consumers.
However, revenue performance in Asia was not as strong.
‘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,’ Cranswick explained.
The UK pig price, on the other hand, climbed 27% during the quarter, in response to a sharp rise in feed prices, with wheat and soya reaching ‘all-time highs’.
Cranswick added that net debt at June 25 was ‘moderately higher’ than at the end of March. It noted that this is due to its ongoing capital investment programme and the impact of inflation on both biological assets and net working capital.
The company said it continues to progress with social, environmental, and economic performance indicators measured by the ’Better Food Index’, by delivering its ‘Second Nature’ sustainability strategy.
Looking ahead, Cranswick expects annual results in line with board expectations. The company will report results for the half-year ending on September 24 on November 22.
Chief Executive Officer Adam Couch said: ‘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,’ Couch added.
Cranswick shares were down 1.2% to 3,301.01 pence each in London on Monday morning.
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