Cranswick first-quarter revenue 25% ahead

Shares of Hull-based meat processing giant Cranswick Plc rose about 6% on Monday after it published a trading update for the 13 weeks to June 27, 2020, showing revenue 24.8% ahead of the same period last year.  

Excluding the contribution from acquisitions made in the prior year, first-quarter revenue on a like-for-like basis was 19.2% higher.

Cranswick said its outlook for the current financial year ending March 27, 2021, is now expected to be ahead of its previous expectations.

Cranswick shares rose around 6% to around £40.46 to give the firm a current stock market value of about £2 billion. The company’s shares have soared 57% in the past 12 months.

“As a result of the current shift towards greater in-home consumption, retail demand has been exceptionally robust,” said Cranswick.

“This, together with increased poultry sales from the new Eye facility, which continues to perform strongly and the benefit from new contract wins, have all comfortably offset lower food service revenue. 

“This positive performance has, to date, continued during the second quarter of the financial year.”

In its outlook, Cranswick said: “Following the exceptional demand experienced in the first quarter, retail volumes are expected to begin to normalise through the remainder of the year as consumers gradually return to eating out of home.

“Whilst the board remains cautious about the longer-term economic impact of COVID-19, the uncertainty surrounding the ongoing Brexit negotiations and the conclusion of trade deals with other countries, the outlook for the current financial year ending 27 March 2021 is now expected to be ahead of its previous expectations.”

Cranswick CEO Adam Couch said: “We have made a strong start to the year. 

“Whilst we remain cautious about the longer-term economic impact of COVID-19 and the uncertainty surrounding the ongoing Brexit negotiations we are well positioned to address these challenges.”

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