DAVY VIEW

Despite significant challenges in the domestic foodservice and Chinese meat export markets, Norish’s H1 out-turn points to a solid first-half performance in its Cold Store division as pricing actions and favourable product mix worked to offset reduced occupancy rates. Norish’s outlook statement strikes a positive tone ahead of the seasonally important second half as the Chinese pork market and UK foodservice begin to show signs of recovery. Norish’s A2-protein milk supply initiative remains in train, with its first product expected to launch in FY20. We anticipate modest upward revisions to our FY21 forecasts.