Cranswick’s Christmas performance has propelled the business beyond its annual expectations as the continued shift to in-home eating during the pandemic saw sales surge further.
The Hull-headquartered pork specialist said strong revenue and earnings momentum delivered during the first half of the financial year continued during the 13 weeks to December 26. It was enjoying a 21 per cent uplift.
Adam Couch, chief executive of the FTSE-listed company, released the third quarter trading statement on Thursday. He said: “Performance over the festive trading period was robust and ahead of the same period in 2019, reflecting a well-executed Christmas plan, supported by exemplary service levels to our customers and tight cost control.”
Results for the major supermarket supplier were aided with the 海角视频 pig price continuing to ease during the period, ending the quarter nine per cent lower than at the same stage last year.
Far East sales slacked due to output being directed to the 海角视频 market, and the temporary suspension of export licences at Northern Ireland and Norfolk sites due to Covid outbreaks.
Northern Ireland’s was reinstated in November 23, with Norfolk anticipated in the coming weeks.
Mr Couch said: “The safety and wellbeing of our colleagues remains our priority. We have delivered another strong quarter of growth during which we have supported our customers by delivering excellent service levels to ensure full availability of our products both in store and on the fast-growing online channel. None of this would have been possible without the incredible support of our colleagues across the business and on behalf of the board I thank them for their continued commitment and dedication.
“Our outlook for the current financial year is now expected to be ahead of our previous expectations. Our continued positive progress reflects the substantial ongoing investment in our asset base and the quality and capability of our colleagues.”
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Half year results, released in November, revealed sales of £931.6 million, from £770 million, aligning with the coronavirus outbreak from March to September - delivering operating profit of £62 million from £47.4 million. Financials haven't been released for the latest quarter.
Mr Couch told how thorough planning has ensured Cranswick was well prepared for Brexit, having “worked closely with suppliers and customers to proactively manage supply chain risks and had developed and successfully implemented mitigating action plans to minimise Brexit related costs and supply chain disruption”.
Ongoing support is being provided to employees to obtain 海角视频 settled status with a move to recruiting more permanent members to add to the 12,500 strong workforce, based across 16 sites.
One job creation driver was a major contract win with McDonald’s, with 100 new jobs in the home city.
“The new £20m cooked bacon facility in Hull is well advanced and progressing to plan with commercial production due to start in quarter one of the new financial year,” Mr Couch said.
“We continue to invest at pace across our asset base to increase capacity, add new capability and drive operating efficiencies whilst maintaining industry leading standards.
A 27 per cent capacity uplift at the Eye poultry facility in Suffolk, taking it from 1.1 million to 1.4 million birds a week handled, will be commissioned in the current period. There was no immediate update on the aspirations for a northern plant.
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Net debt increased, but Mr Couch said it reflected the usual seasonal uplift in working capital, build-up of additional Brexit-related inventory and the group’s “substantial ongoing capital investment programme”. He added that borrowings continue to be managed conservatively with committed, unsecured facilities of £200 million “providing considerable headroom to support the group’s growth strategy”.
Renewable energy is a major focus - increasingly sought after by investors.
A ‘Second Nature’ strategy, has seen solar panels added for self-generation, with heat and steam using combined heat and power units added.
Looking ahead, Mr Couch said: Outlook for the remainder of the current financial year the shift towards greater in-home consumption with resulting high demand for our products is expected to continue. The board is confident that continued focus on the strengths of the company, which include its long-standing customer relationships, breadth and quality of products, robust financial position and industry leading asset infrastructure, will support the further successful development of the group over the longer term.
Full year results are expected in May. Shares were up 2 per cent in early trading.