Q3 Trading Update and Acquisition of JSR Genetics
21 January 2025
Cranswick plc
("Cranswick" or "the Company" or "the Group")
Third quarter trading statement
and
Acquisition of JSR Genetics, a leading UK pig genetics business
Cranswick, a leading UK food producer, today provides an update on trading for the 13 weeks to 28 December 2024.
Current trading
Strong revenue growth during the period was again underpinned by excellent volume growth across our core UK food business, as customers and the UK consumer continue to appreciate the affordability, value for money and versatility of our core pork and poultry categories. Our premium value-added products performed extremely well, contributing to a record festive trading period performance.
The Group's expanded pig farming and milling operations continue to contribute positively and will be further strengthened by the acquisition of JSR Genetics which we are announcing today and is set out in more detail below.
On 3 December 2024, we received the positive news that the China export licence at our Norfolk primary processing facility had been reinstated after a four-year hiatus. A full range of products started being shipped to China from early January.
Investment
Our substantial ongoing capital investment programme continues to add capacity, drive automation and deliver efficiency improvements. We are accelerating the pace at which we deploy capital to drive attractive and industry leading returns and we now expect full year capital expenditure to be ahead of our previous guidance.
Acquisition
We have acquired the entire issued share capital of JSR Genetics Limited ('JSR Genetics') from JSR Farms Limited. The transaction includes the pig genetics and pig farming operations of JSR Farms Limited.
JSR Genetics is a leading UK based pig genetics company, located in East Yorkshire and is renowned for its innovative genetic solutions for cost effective pig production. Genetic improvement is centred around sustainability and efficiency. Extensive research and innovation deliver pig genetics with a continuous improvement in production efficiency, meat quality, animal health and robustness. JSR Genetics is an existing, long-standing, valued supplier to Cranswick.
Financial position
The Group remains in a robust financial position with committed, unsecured facilities of £250 million providing comfortable headroom.
Outlook
Whilst we remain cautious about current market and wider geopolitical and economic conditions, the outlook for the current financial year ending 29 March 2025 remains in line with current market expectations*.
The Board is confident that the continued focus on the strengths of the Company, which include its long-standing relationships, breadth and quality of products, robust financial position, and industry leading asset infrastructure, will support the further successful development of Cranswick during the current year and over the longer term.
Capital Markets Day
The Group will hold a Capital Markets Day for analysts and institutional investors in London on 20 March 2025. More information on this event will be provided in due course.
Preliminary results
The Company's next scheduled comment on trading will be the preliminary results announcement for the 52 weeks ending 29 March 2025, on Tuesday 20 May 2025.
Adam Couch, CEO of Cranswick, commented:
"We have delivered a record Christmas trading period underpinned by outstanding service levels and sector leading innovation across our festive product range. I would like to thank all our colleagues for their continued dedication and support in delivering this excellent performance.
"I am delighted to announce the acquisition of JSR Genetics, a leading pig genetics supplier and commercial pig producer based in East Yorkshire. This acquisition increases the scale of our indoor pig production, further securing supply for our customers' pork requirements. The addition of an integrated pig genetics supply chain will allow us to drive ongoing improvements in production efficiency, meat quality, animal health and robustness, for the long-term benefit of our customers and the UK consumer.
"As we look ahead to the new financial year, we will need to manage the well-publicised inflationary pressures alongside wider economic uncertainty and food security risks, but our business is in great shape, and we are well placed to successfully manage the challenges that may lie ahead."
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* |
Market expectations for adjusted profit before tax as at 21 January 2025 range between £189.0m and £195.1m. The range reflects all published updated Broker analysis following release of our interim results on 26 November 2024. |
Enquiries:
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Cranswick plc |
01482 275 000 |
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Mark Bottomley, Chief Financial Officer |
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Sodali & Co |
+44 207 100 6451 |
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Ben Foster / Louisa Henry / Flora Mackenzie |
Note to editors:
1. Cranswick is a leading and innovative supplier of premium, fresh and added-value food products. The business employs over 15,000 people and operates from 22 well-invested, highly efficient facilities in the UK. Cranswick was formed in the early 1970s by farmers in East Yorkshire to produce animal feed and has since evolved into a business which produces a range of high quality, predominantly fresh food, including fresh pork, poultry, convenience, gourmet products and pet food. The business develops innovative, great tasting food products to the highest standards of food safety and traceability. The Group supplies the major grocery multiples as well as the growing premium and discounter retail channels. Cranswick also has a strong presence in the 'food-to-go' sector and a substantial export business. Results for the 53 weeks to 30 March 2024 showed revenue of £2,599.3m and profit before tax of £158.4m. For more information go to: www.cranswick.plc.uk
2. At Cranswick, it is second nature for us to protect and nurture our environment while supporting people and communities to thrive. Guided by our sustainability strategy, Second Nature, we have seamlessly integrated our sustainability commitments into the core of our business model, which in turn shapes our decision-making, culture, and actions. For more information on out Second Nature strategy, please visit: www.cranswick.plc.uk/sustainability
3. This announcement is based on information sourced from unaudited management accounts.
4. This announcement contains certain forward-looking statements with respect to the financial conditions, results of operations and businesses of Cranswick. These statements involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. Nothing in this announcement should be construed as a profit forecast.
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