Revenues up at food producer despite tough conditions
Food producer, Cranswick, says its revenue in the 13 weeks to 25 June 2022 was 7.6% ahead of the same period last year.
Excluding the contribution from acquisitions made in the prior year, revenue on a like-for-like basis was 5.8% higher, with strong growth in the Hull-based company’s core UK market partly offset by expected lower export revenue.
Cranswick’s trading update adds that its UK revenue across all four food product categories was ahead year-on-year.
Adam Couch, CEO, said: “We have made a positive start to the year, notwithstanding the challenging operating conditions we continue to experience.
“Our capital investment programme remains firmly on track as we build the platform to deliver our long-term growth strategy and we continue to make meaningful progress in delivering our Group-wide ‘Second Nature’ sustainability strategy.”
The business says “substantial and widespread cost inflation” continues to be proactively managed and mitigated through tight cost control and ongoing recovery.
Its Far East export sales were, as anticipated, lower than the same quarter last year due to market prices falling from the elevated levels experienced over the previous two years and the ongoing suspension of Cranswick’s Norfolk primary pork processing facility’s China export licence.
The UK pig price increased by 27% during the period, reflecting the rapid response to the sharp rise in feed prices with wheat and soya reaching all-time highs.
Cranswick says it has reflected these higher input costs in the price we pay to both its own farming operations and our third-party producers.
The company is continuing to invest in its asset base to support future growth and further operating efficiencies.
Shortly before the FY22 year end, pre-production trials started at its new £32m Breaded Poultry facility in Hull, with full commercial roll-out starting in the first weeks of this quarter.
The Group remains in a robust financial position with committed, unsecured facilities of £250m providing comfortable headroom.