(Reuters) – British meat producer Cranswick said on Tuesday it had a record Christmas trading period, buoyed by strong demand for its premium value-added products, which would help its full-year profit meet market expectations.
WHY IT’S IMPORTANT
British supermarkets and retailers enjoyed robust Christmas sales but worries over weakening consumer confidence are dampening the economic outlook.
Meanwhile, businesses face mounting pressure as rising employer taxes and a higher minimum wage take effect in April, adding to their financial challenges.
BY THE NUMBERS
Cranswick, which produces fresh pork, bacon, gourmet sausages, poultry items and continental foods, estimated its annual profit would be in line with market views.
The company-compiled market expectations for its full-year adjusted profit before tax range between 189 million pounds ($232 million) and 195.1 million pounds.
WHAT’S NEXT
The Hull-headquartered company said its China export licence for its Norfolk primary processing facility had been reinstated after a four-year halt, following the UK government’s move in December to allow British pork producers to resume exports to China.
“A reinstated China export licence at its Norfork facility also allows the facility to ship a full range of products to China from early January,” RBC analysts said in a note.
QUOTE
“As we look ahead to the new financial year, we will need to manage the well-publicised inflationary pressures alongside wider economic uncertainty and food security risks,” CEO Adam Couch said in a statement.
MARKET REACTION
Analysts at RBC Capital Markets said Cranswick’s solid third-quarter performance did not come as a surprise, particularly considering strong trading updates from UK grocery retailers.
Shares in the FTSE 250 company rose 1.5% to 4,965 pence at 0836 GMT, while the index was up 0.27%. ($1 = 0.8149 pounds)
(Reporting by DhanushVignesh Babu in Bengaluru; Editing by Savio D’Souza)
