Better than expected outlook at listed food producer

Food producer Cranswick has reported that its outlook for the current financial year is now expected to be ahead of the Board’s previous expectations.

Issuing an update on trading for the 13 weeks to 26 December 2020, the Hull-based business adds that strong revenue and earnings momentum delivered during the first half of the financial year continued during the third quarter.

It notes UK retail demand remained strong during the quarter, reflecting the continued shift towards greater in-home consumption resulting from the pandemic. 

Performance over the festive trading period was robust and ahead of the same period in 2019.

The firm’s Far East export sales were lower than the same quarter last year, due to a greater proportion of output being directed to UK retail customers and the temporary self-suspension of the Group’s China export licences for its Northern Ireland and Norfolk primary processing facilities. 

The licence for the Northern Ireland facility was reinstated on 23 November 2020 and Cranswick expects exports to resume from the Norfolk facility in the coming weeks.

The company’s update adds: “Thorough planning ensured we were well prepared for the UK’s exit from the European Union on 31 December 2020. 

“We worked closely with suppliers and customers to proactively manage supply chain risks and had developed and successfully implemented mitigating action plans to minimise Brexit related costs and supply chain disruption.  

“We are providing ongoing support to colleagues in obtaining UK settled status and we are recruiting more permanent team members.”

Cranswick says it is continuing to make substantial investments in its pork and poultry farming operations to add scale, drive efficiency and maintain high standards of animal welfare.

Adam Couch, CEO, said: “We have delivered another strong quarter of growth during which we have supported our customers by delivering excellent service levels to ensure full availability of our products both in store and on the fast-growing online channel. 

“None of this would have been possible without the incredible support of our colleagues across the business and on behalf of the Board I thank them for their continued commitment and dedication.

 “Our continued positive progress reflects the substantial ongoing investment in our asset base and the quality and capability of our colleagues.”