Cranswick Q1 sales up, sells sandwich business

FTSE 250 food producer Cranswick said it has made a positive start to the year, with first-quarter revenue ahead of 2015, as it announced the sale of its sandwich business to Greencore.

In the three months to 30 June, revenue was 11% higher than the same period last year driven by strong volume growth.

Meanwhile, underlying revenue was 5% higher, with corresponding volumes up 12% as lower input prices continued to be passed on to the group's customers.

Cranswick said export volumes to Far Eastern markets were 60% ahead of the same period last year thanks to ongoing robust demand and increased output from the group's two primary processing facilities.

In addition, it said the integration of Crown Chicken – which was bought in April – is progressing to plan.

The company said on Monday that it has sold its sandwich business, The Sandwich Factory, to Greencore for a cash consideration of £15m as part of its plan to focus on the core protein business.

Chief executive Adam Couch said: “I am pleased to announce the sale of our sandwich business to Greencore which is very much in line with our strategy of focusing on our core protein businesses.

Moreover I am particularly delighted that the sandwich division is being acquired by a proven global leader in Greencore who will bring new opportunities and strengths to this business, its customers and the staff to whom, on the board's behalf, I would like to extend our thanks for their long standing loyalty and commitment to Cranswick."

At 0815 BST, Cranswick shares were up 1.4% to 2,366p.