U.K. meat and poultry company Cranswick reported strong trading for the first quarter of fiscal year 2020.
In the Cranswick first-quarter trading statement, released on August 17, it stated that revenue during the first quarter of fiscal year 2020, which concluded on June 27, revenue was 24.8% ahead of where it was during the same quarter of 2019. It added that excluding the contributions from acquisitions made in the prior year, revenue on a like-for-like basis was 19.2% higher. Earlier acquisitions included transactions with Packington Pork, and White Rose Farms.
In its statement, Cranswick noted that the current shift towards greater in-home consumption during the COVID-19 pandemic, retail demand has been “exceptionally robust.” That shift, combined with increased poultry sales from the new plant in Eye, Suffolk, and the benefit of new contracts have “comfortably offset” lower foodservice revenue.
Cranswick added that the positive trends appear to be continuing in the second quarter, and that it anticipates retail volumes to normalize through the remainder of the fiscal year as consumers gradually eat away from home on a more frequent basis.
“Our teams across the business have responded brilliantly during these extraordinary and unparalleled times and I would like to thank them for their incredible support and hard work which has enabled us to continue to deliver premium food products with outstanding service to our customers,” said Adam Couch, CEO of Cranswick.
“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. Our positive momentum reflects the continued investment we make across our asset base and the quality and capability of our colleagues across the business.”
In the trading statement, Cranswick also noted that the company’s net debt fell during the period.
The company also said its outlook for the remainder of the fiscal year, which ends on March 27, 2021, to be ahead of its previous expectations.
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