Crawshaw Group reports increased revenue
Crawshaw Group has seen progress made in the first half of its financial year with increased revenue, despite losses in like-for-like sales.
Noel Collett.
Earnings before interest, tax, depreciation and amortisation came at £0.2 million in the 26 weeks ending 30th July, down from £0.3 million in 2016, and gross margin peaked at 42.9%, compared to 45.2% in 2016.
Like-for-like (LFL) sales dropped 4.2%, slightly down compared to -4.4% in 2016, along with customer numbers that fell by 3.5%, although improved compared to the same period in the previous year, at -5.6%.
According to the company, profitability in the first half of its financial year was “impacted by Sterling weakness and shape of sales recovery”.
It added that Sterling depreciation of 10% caused a 1.5% gross margin impact, while strategic investment value reduced margin “as expected by 1%”.
Crawshaw Group also noted that fresh meat customer numbers are “improving with average transaction values lower as customers trade into re-based value”.
Elsewhere, the group said that its partnership with 2 Sisters Food Group is “progressing”, with core supply routes now being “well established”, with “over 20% of fresh meat product now sourced from 2Sisters and expected to increase”.
In addition, Crawshaw Group highlighted that it opened one new factory in the first half of its financial year, with four more planned by this year’s end; to facilitate an “accelerated roll-out”, the group said it was investing £6.8 million.
Looking to the second half of its financial year, the group said “the positive customer and sales momentum from Q1 into Q2 has continued post period end into Q3”, adding: “Customer numbers for the first 6 weeks of H2 have returned to growth, up 5.4% on the prior year, while LFL sales for the same period are now tracking at -1.1%.”
Noel Collett, CEO, commented: “These results demonstrate progress in ensuring we have high quality products at the lowest possible prices.
“The improvements to the breadth, depth and price of our ranges are driving the significantly improving trend in customer numbers, which is a key metric of loyalty and success in preparation for the important winter and festive season ahead.”
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