Cranswick has reported a 2% drop in revenue in the three months to December 31, 2018, compared to the equivalent 13-week period in the previous financial year.
In a statement, Cranswick said the UK pig price continued to ease during the period, ending the quarter 7% lower than at the same stage last year. This downward trend is being reflected in selling prices, the company said.
Performance over the festive period was robust, reflecting a well-executed Christmas plan, strong cost control and operational efficiencies.
Cranswick said it continues to invest at record levels across its asset base to increase capacity, add new capability and drive further operating efficiencies, whilst maintaining industry leading standards at all its facilities.
The company reported that net debt increased during the quarter, reflecting the “customary seasonal increase in working capital” and ongoing expenditure on capital projects, and ended the period in line with the same stage last year.
Looking forward, Cranswick said that operating margin is likely to decline, reflecting the potentially challenging commercial landscape.
The Cranswick board said it is confident that continued focus on the strengths of the company, which include its long-standing customer relationships, breadth and quality of products, financial position and leading asset infrastructure, will support the further successful development of the business over the longer term.