Cranswick reports revenue growth amid 'challenging' outlook

Cranswick saw strong revenue growth and earnings momentum in the 26 weeks ended 25 September 2021
Cranswick saw strong revenue growth and earnings momentum in the 26 weeks ended 25 September 2021

UK food producer Cranswick has posted a 6.6% increase in revenue to over £993m in the 26 weeks ended 25 September 2021, despite an 'incredibly challenging' operating environment.

The Hull-based processor, which owns farms and supplies pork and chicken to retailers, posted an adjusted profit before tax of £68.3m, up 12.5% from £60.7m.

Cranswick saw 'further positive and sustainable progress' during the first half of the year, delivering revenue and earnings growth amid a 'challenging environment'.

The UK meat sector is currently facing a triple whammy of rising raw material costs, labour shortages, and CO2 disruptions - creating pricing pressure.

Against this backdrop, Cranswick reported a significant uplift in poultry sales following the successful capacity expansion at its processing facility in Eye, Suffolk.

The firm also saw an expansion of its convenience category following two complementary bolt-on acquisitions, further strengthening its non-meat range.

A £31 million breaded poultry facility is on track for completion in fiscal year 2023, Cranswick explained in its results.

This will be its fourth new-build production facility commission in the last five years, with a combined total investment of over £180m.

Commenting, Adam Couch, Cranswick’s chief executive officer said: “We continue to invest in the long-term sustainability of our business.

“I would like to thank our customers, suppliers and all my colleagues for their ongoing support, understanding and resilience during this very demanding period.

“Our outlook for the current year is unchanged and we have a solid platform from which to continue Cranswick’s successful long-term development.”

The report's sustainability highlights show that the firm's 14 eligible manufacturing sites are now certified carbon neutral.

Cranswick has also committed to purchasing 100% deforestation-free soya, which it expects will result in a 20% reduction in carbon compared to the previous system.