Cranswick reported its results for three months to 31 December 2018, posting a 2% fall in revenue for the period.
The UK food producer said that lower sales in pork related produce were offset by more growth in its poultry and continental products.
In addition, Cranswick said it intends to invest further in its facilities to improve efficiency and increase capacities.
It said construction of its new poultry processing facility in Eye, Suffolk was on track, and expected to be completed by the end of the financial year.
The group also announced the securing of a new long-term contract with Wm Morrison Supermarkets plc to supply its poultry.
Future Outlook
Looking ahead, Cranswick said that its operating margin is likely to decline, due to a “potentially challenging commercial landscape”.
Alongside difficult trading climate, the company said that costs relating to its new facility in Eye would also impact profitability during the course of the year.
The statement added:
“Notwithstanding these short-term challenges, our new Eye and existing added value, poultry facilities and our broadening customer base, provide a solid platform to further develop our poultry business and drive future growth in this attractive and expanding protein category.”
Cranswick (LON:CWK) is listed on the London Stock Exchange. It is a constituent of the FTSE-250 Index.
Shares in the food producer are currently -15.52% as of 11:59AM (GMT).
