Cranswick revenue slips 2% over festive period, warns on margins to decline

Writer, Stock Market Wire
Thursday, February 7, 2019 - 08:07

Cranswick said Thursday revenue fell 2% over the festive period, and warned margins would come under pressure amid 'challenging' retail backdrop.

For three months ended 31 December, revenue fell 2% compared from a year earlier as strong growth in poultry and continental products was offset by lower sales from other, pork related, categories, the company said.

The UK pig price continued to ease during the period, and weighed on selling prices, ending the quarter 7% lower than at the same stage last year.

Construction of the group's new poultry processing facility in Eye, Suffolk, was continuing to plan with the exterior building works nearing completion and commissioning anticipated towards the end of the next financial year as previously indicated, the company said.

The group also secured a long-term supply agreement with Wm Morrison Supermarkets to supply fresh poultry from the new Eye facility, and said it would also shortly start supplying the same customer with a range of cooked poultry products from our added value poultry facility in Hull.

The company said its expectations for the group's trading performance in the current year were unchanged, but said margins would likely come under pressure.

'For the following financial year, the group's operating margin is likely to decline, reflecting the potentially challenging commercial landscape, together with start-up and commissioning costs associated with the new Eye Facility, only partly offset by management actions,' the company said.

At 8:07am: (LON:CWK) Cranswick PLC share price was -455p at 2509p

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