Cranswick Posts 'Positive' Q1 Results, Acquires Katsouris Brothers
British meat supplier Cranswick Plc has posted a 1.5% year-on-year increase in revenue in the first quarter of its financial year ended 30 June 2019.
Export revenues in the far East saw strong growth during the quarter when compared with the same period in 2018, according to the trading update.
The company attributed this growth to increased demand from China after the outbreak of African swine fever in the region.
In the UK, pig prices increase by 10% in the first quarter but the year-on-year average price declined during the three months to 30 June.
The meat supplier reported an increase in net debt in the first quarter due to its ongoing capital investment programme.
The company said it is in 'robust financial position' with committed, unsecured facilities of £160 million.
'A Positive Start'
Adam Couch, CEO of Cranswick, 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," he added.
The meat giant has announced the acquisition of Katsouris Brothers Limited, a leading continental, and Mediterranean food products business.
Katsouris Brothers operates from two facilities in Wembley in North London and employs around 250 people.
Commenting on the acquisition Couch said, "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," he explained.
Katsouris Brothers reported revenue of £68 million and adjusted EBITDA amounting to £6 million for its financial year ended 30 June 2019.
Cranswick confirmed its outlook for the rest of its financial fiscal to be inline with the management’s expectations.
The Board is confident of the continued, long-term success and development of the business because of experienced management, strong product line up, and a well-invested asset base.
The company also expects to benefit from the acquisition of Katsouris Brothers.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.