Coronavirus Update

Cranswick Plc - Interim Results

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CRANSWICK plc: INTERIM RESULTS

A strong performance in a challenging environment

24 November 2020

Cranswick plc ("Cranswick" or "the Company" or "the Group"), a leading UK food producer, today announces its unaudited results for the 26 weeks ended 26 September 2020.

COVID-19 update:

· Colleague safety and wellbeing remains our priority

· Proactive, comprehensive and well embedded COVID-19 action plan centred on keeping our colleagues safe, feeding the nation and supporting our local communities:

  • Enhanced safety measures swiftly introduced in March continue to be monitored and reviewed
  • Working closely with our customers, the Government and regulatory bodies to ensure the continued supply of essential food products
  • £500 bonus paid at the end of June to each of our site-based colleagues to recognise their essential key worker status and valued contribution throughout the pandemic
  •  Ongoing support to front line NHS staff, the elderly and vulnerable and charities in our local communities

· Robust financial position and strong trading has enabled us to continue operating well within banking covenants and without recourse to any Government assistance

Commercial and strategic progress:

· Strong revenue growth and earnings momentum

· Exceptionally robust demand across all categories reflecting the current shift towards greater in-home consumption

· Strong contribution from the new Eye poultry facility during the period.  Additional investment underway at the site to add further capacity and enhanced capability

· £20m investment in new Hull cooked bacon facility now well advanced and progressing to plan

· Total capital expenditure of £35m spread across the Group's asset base during the period

· Brexit preparations well advanced across all areas of the business

· Continued positive progress towards meeting our 'Second Nature' sustainability targets

Financial highlights * :

 

2020

 

2019

 

Change

(Reported)

Change

(Like-for-like  )

 

 

 

 

 

Revenue

£931.6m

£770.0m

+21.0%

+17.3%

Adjusted Group operating profit

£62.0m

£47.4m

+30.8%

 

Adjusted Group operating margin

6.7%

6.2%

+50bps

 

Adjusted profit before tax

£60.7m

£46.4m

+30.8%

 

Adjusted earnings per share

92.8p

71.6p

+29.6%

 

 

 

 

 

 

 

· Statutory profit before tax 13.3% higher at £53.7m (2019: £47.4m)

· Statutory earnings per share up 11.9% to 81.9p (2019: 73.2p)

· Interim dividend increased by 12.0% to 18.7p (2019: 16.7p)

· Return on capital employed 66bps higher at 16.6% (2019: 15.9%)

· Net debt (excluding IFRS 16 lease liabilities) of £54.6m (2019: £67.2m and March 2020: £81.0m)

· Robust balance sheet with £200m of bank facilities providing over £145m of headroom

Adam Couch, Cranswick's Chief Executive Officer commented:

"I am incredibly proud of our colleagues who have performed so brilliantly in responding to the extraordinary and unparalleled challenges we currently face.  I would again like to thank them for their professionalism, commitment, dedication and passion.

"We have made a strong start to the year.  Although we remain cautious about the longer-term economic impact of COVID-19 and the continued uncertainty surrounding the ongoing Brexit negotiations, we are well positioned to address these challenges.

"Our outlook for the current year is unchanged and we have a solid platform from which to continue Cranswick's successful long-term development. "