Strong appetite for growth at food producer as demand remains buoyant
Food producer, Cranswick, says its revenue in the 13 weeks to 24 June 2023 was 14.7% ahead of the same period last year.
In a trading update for this period, the Hull-based company notes demand is resilient in its core categories, adding that the outlook for the current financial period is expected to be ahead of previous expectations.
The group says it remains in a robust financial position with committed, unsecured facilities of £250m providing comfortable headroom.
Adam Couch, CEO, said: “We have made a strong start to the year, delivering another quarter of growth during which we have again supported our customers by providing excellent service levels to ensure full availability of our products.
“None of this would have been possible without the incredible support of our colleagues across the business.
“Our continued positive progress reflects the substantial ongoing investment in our asset base and the quality and capability of our colleagues across the business.”
The firm says UK revenue across all four of its food product categories was ahead year-on-year, underpinned by positive volume momentum in its Fresh Pork, Convenience and Gourmet products categories.
Export sales were lower, with Far East volumes remaining subdued reflecting the anticipated seasonal slowdown in demand in China.
Cranswick states that cost inflation continues to be “proactively managed and mitigated” through tight cost control and ongoing recovery.
The company continues to expand its own pig herd to ensure it has the required quantity and quality of pigs to service customer requirements. Cranswick says it will keep building up its farming capability to ensure continuity of supply.
The update adds: “We continue to invest at pace across our asset base to support future growth and further operating efficiencies.
“Additional investment in our Cooked Poultry site will increase cooking and roasting capacity and through innovation will enhance our ability to deliver value-add products in the category.
“Looking ahead, we expect planned capital investment to add substantial capacity to our pork primary processing operations and drive further efficiencies as we look to service our rapidly growing value-added pork business.”
