UK food producer Cranswick plc (LON: CWK) posted what it described as an ‘encouraging’ first quarter.
Revenues were up 1.5% for the three months to 30 June 2019, compared to the same period on-year. Far East exports were up 10% due to the African Swine Fever outbreak in China, and UK pig prices were up 10%.
Regarding expansion of its operations, the Company acquired Mediterranean food company Katsouris Brothers for a £43.5 million interest. They also invested in a poultry primary processing facility at Eye in Suffolk. The new facility cost £75 million and will double the Company’s current processing capacity.
Company CEO Adam Couch, said,
“We have made a positive start to the year and our capital investment programme, which is building a platform for future growth, remains firmly on track. We continue to make pleasing progress on the new Eye poultry facility and our new continental products facility in Bury is now performing strongly and in line with the original business case.”
“I am delighted to announce the acquisition of Katsouris Brothers, a leading supplier of Continental and Mediterranean food products. This acquisition strengthens our existing continental products business and broadens our offering in a number of fast-growing, plant based, non-meat product categories.”
“The family behind Katsouris Brothers has created long lasting and sustained relationships with suppliers and the business has a strong customer base. We look forward to building on this and continuing to invest in the facilities and the team, over the years ahead.”
The Company’s shares rallied 9.24% or 238.00p following the update, up to 2,814.00p a share 29/07/19 14:04 BST. Liberum Capital analysts reiterated their ‘Buy’ rating while Peel Hunt retained their ‘Hold’ stance. The Company currently has a p/e ratio of 17.85 and a dividend ratio of 1.98%.