Food producer cooks up a revenue rise
UK food producer, Cranswick has announced its increased revenue as it continues to “operate in the most challenging of periods.”
The Hull-based business has seen revenue rise by 16% to £1.76bn for the year ended 28 March 2020.
It has certainly been a strong 12 months for the business which saw declining revenues and profits in 2018/19.
The results could vindicate the decision made last year by the business to invest record levels across its asset base, resulting in the commissioning of a new “world-class primary poultry facility” in Suffolk this year and the acquisition of a number of business including Packington Pork and White Rose Farms.
The firm has also recorded growth internationally with export revenue up by over 90% and strong growth in the Far East market. It said it is in a “strong financial position” and it has been operating “well within banking covenants and without recourse to any Government assistance”.
Adam Couch, Cranswick’s chief executive officer, said: “We continue to experience and operate in the most challenging of periods.
“The last 12 months has seen us deliver key steps in our diversification strategy with the successful commissioning of our Eye poultry facility and the acquisition of Katsouris Brothers which expands our non-meat activities. We also completed two further acquisitions to increase our vertical integration in pork.
“We spent a record £101m across our asset base and this brings the total investment in our infrastructure over the last eight years to more than £400m.
“The strong growth and strategic progress we have made over the last 12 months has been made possible by the platform we have built and the pipeline we have laid down in recent years. Our positive momentum is a reflection of the continued investment we make in our infrastructure and the quality and capability of all our colleagues.”
Despite these positive results, Cranswick hit headlines earlier this week after MP John Healey, who represents Wentworth and Dearne, and Barnsley East MP Stephanie Peacock raised concerns over how the Health and Safety Executive dealt with the outbreak of coronavirus at Cranswick Convenience Foods in Wombwell, near Barnsley which resulted in the death of three employees. Other meat processing facilities in the UK, Europe and USA have also been subject to outbreaks among the workforce in recent weeks.
In his comments on the results Couch acknowledged the challenging period saying: “Our business is founded on our people and I would like to thank all our colleagues for their professionalism, commitment, dedication and passion. We will continue to support all Cranswick colleagues and their families who have been affected by COVID-19.
“To recognise the outstanding contribution of our people we announced in April that we will pay a £500 bonus to each of our site-based colleagues at the end of June.
Alongside this bonus to staff he also outlined the work Cranswick has been doing with the community, by “making and delivering sandwiches and sausage rolls to front line NHS staff, giving food hampers to the elderly and the vulnerable in our communities and care homes, as well as supporting local charities.”
Looking to the future, the firm claims that despite the disruption to the food-to-go sector caused by the current pandemic it has had a positive start to the year and that it can continue to meet the challenges presented by Covid-19
However it cautions that with trade negotiations still to be finalised with the EU and other countries “it is difficult to assess how well the food industry will be positioned”.
Couch concludes: “Our outlook for the current year is unchanged and we have a solid platform from which to continue Cranswick’s successful long-term development.”
