Business
3rd Quarter Trading Statement
3rd Quarter Trading Statement.
About this update from Cranswick Plc
[{"type":"text","content":"\n Cranswick PLC\n01 February 2008\n\n\n\n\nCranswick plc ('Cranswick' or 'the Company') - third quarter trading statement\n\n\nTotal sales for the Company in the quarter to 31 December 2007 were £158m, an\nincrease of 18 per cent compared to the same period last year after adjusting\nfor the impact of the sale of the animal feeds business in May 2007.\n\nIn the food division, turnover increased by 17 per cent compared with the same\nperiod last year, which was pleasing given strong comparatives. Most product\ncategories showed double digit growth, with sausage and bacon performing\nparticularly well and benefiting from investment in additional capacity during\nthe year. Production of premium bacon from the new factory at Sherburn-in-Elmet\ncommenced on schedule, enabling the high December demand to be met and bacon\nactivities are currently being consolidated on to this site.\n\nTurnover in the pet division, which accounted for 6 per cent of total Company\nsales in the quarter, was up by 37 per cent following better bird food sales.\nThe aquatics business is now fully operative at Chorleywood following a fire in\nDecember 2006. There has been significant raw material price inflation in the\npet food business, most of which has now been passed on in the finished product\nprice.\n\nDuring the second half, the food division has suffered from some sales price\ndeflation. Furthermore, the industry is experiencing rising input costs in pig\nmeat, beef and poultry. Whilst Cranswick is benefiting from higher than planned\nvolume gains, it is currently proving difficult to pass on the full impact of\nrising costs. Discussions on this are ongoing with customers. Assuming a\ncontinuation of current conditions, the impact of these two factors, together\nwith the impact of the fall in the value of sterling on the charcuterie\nbusiness, is expected to have a modest negative impact on the results to 31\nMarch 2008. The Directors expect the effect of these issues in the current year\nto be approximately matched by exceptional gains of around £1.8m.\n\nWhilst it is disappointing to be experiencing these pressures, which can be\nexpected to moderate the Company's growth rate, Cranswick is in a very strong\nposition to capitalise once equilibrium returns to input prices and selling\nprices. Our market positions are strong, our plants are well i...