Cranswick Q1 sales up, sells sandwich business

25th Jul 2016 07:45

(ShareCast News) - 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.