Cranswick grows sales over third quarter
Cranswick has posted a 5% increase in total revenue for the three months to 31 December 2015.
Described as being “in line with expectations”, the increase in revenue was driven by strong volume growth of 11% and another strong Christmas trading period.
Underlying revenue was 4% higher than the same period last year, with corresponding volumes up 10% as the benefit of falling input prices was again passed on to Cranswick’s customers. The group’s export sales grew strongly, with volumes shipped to the Far East 28% ahead of the same quarter last year.
Due to the seasonal increase in working capital and ongoing capital expenditure, net debt for the group increased from £5 million to £18m during the quarter, well below the £57m reported at the same stage last year.
The group continued to invest heavily across its asset base to increase capacity and drive further operating efficiencies.
In a trading statement, it said: “The group is in a sound financial position, with committed, unsecured facilities of £120m, providing significant headroom.
“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 remainder of the financial year.
“With experienced management at all levels of the group, a strong range of products, a well-invested asset base and a robust financial position, the board remains confident in the continued long-term success and development of the business.”
Investec analyst Nicola Mallard said: “The strong volume performance from Cranswick over the festive season was broadly based by product and customer. While some of the growth reflects a contract regain, there is sufficient momentum in the wider business to see growth continue past the anniversary of the win.”
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