Strong demand and a series of investments pay off
May 22, 2024
2 minute read
Meat producer Cranswick on Tuesday reported better-than-expected profits for its 2024 fiscal year, thanks to strong demand and a series of capital investments, Reuters reported.
The 50-year-old company, which traces its roots to a pig farm in Yorkshire, has invested heavily in expanding its production capacity and product range to diversify its revenue streams.
A bright spot for UK food producers is the positive increase in consumer spending, reflected in a particularly strong Christmas season.
Cranswick said a positive recovery in pig prices, supported by easing inflationary pressures, helped offset disappointing performance in the latest ‘pet products’ sector and weaker export sales. .
“Outside the UK, Cranswick remains unable to secure the necessary licenses due to the government’s lack of interest in expanding exports to China, resulting in a decline in exports in FY24 compared to the previous year,” analysts at Shore Capital wrote in a note.
Cranswick, which produces fresh pork, bacon, gourmet sausages, poultry products and continental foods, said trading so far this year was in line with expectations.
“We anticipate further consolidation of the sector in the coming years, and Cranswick is committed to expanding its aquaculture capacity to ensure continuity of supply, sustainability leadership and the highest animal welfare standards,” the company said. Ta.
Shares in the FTSE 250 fell nearly 4% on Tuesday, but are up more than 12% since the start of the year.
Cranswick reported adjusted profit of 176.6 million pounds ($224.4 million) for the year ended March 30, beating expectations of 170 million pounds.
Full-year sales were £2.6 billion, slightly above expectations of £2.59 billion.
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