logo-loader

Cranswick serves up better-than-expected revenue

Published: 17:20 01 Oct 2015 AEST

shutterstock_274791692
Cranswick reported strong volume growth across most product areas

Sausage and bacon maker Cranswick (LON:CWK) served up better-than-expected revenue and forecast a sizzling Christmas.

Cranswick, which also makes specialist sandwiches, charcuterie and chicken and poultry products, said total revenue in the six months to 30 September 2015 was 10% ahead of the same period last year, driven by strong volume growth across most product areas.

"Revenues during the first half of the year were slightly ahead of the board's expectations," it said.

Underlying sales were 7% higher than the same period last year, with corresponding volumes up 10% as the group's customers and UK consumers continue to benefit from lower input prices.

Net borrowings were below the previous quarter end and comfortably lower than those of a year ago, Cranswick said.

It added that it was in a sound financial position with committed, unsecured facilities of £120mln, which provide comfortable headroom.

The group said in a statement: "Cranswick continues to work closely with its customers and to maintain its focus on service, quality and innovation to deliver exciting, competitively priced products in market conditions that are expected to remain competitive through the second half of the year.

"This approach, allied to a broadening product portfolio and an anticipated strong Christmas trading period, means the business remains very well-placed to deliver further growth this financial year."

Shares rose 25p to 1621p in early trading in London.

House broker Shore Capital said: "With limited upward pressure from the UK pig price (albeit EU prices have ticked up in recent weeks), we expect pork to remain a very competitively priced protein source which should underpin Cranswick’s medium term volume growth."

 

 

 

 

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

8 hours, 25 minutes ago