Cranswick reports strong half-year after chicken M&A
The firm’s underlying revenue was reported to be up by around 8.0 percent.
Revenue is up by 15.9 percent to GBP580.8 million (US$725.7 million) for the half-year compared to the same period of 2015, reports UK pork, chicken and other foods producer, Cranswick plc. The firm’s underlying revenue was reported to be up by around 8.0 percent, while operating margin increased to 6.6 percent.
In April of this year, Cranswick acquired Crown Chicken Limited, adding to its poultry portfolio acquired through the purchase of a producer of premium poultry products, Benson Park, in 2014. This latest acquisition made a strong contribution to the company’s results, according to the report, and the integration of the business is proceeding as planned.
“The business performed strongly during the first half of the year,” commented Martin Davey, Cranswick’s chairman in a press release. “Crown has made a particularly positive contribution to the business, is combining well with the Group’s pre-existing poultry activity and is being integrated in line with plan.”
In the full year to March 2016, Cranswick achieved sales from continuing operations of GBP1.016 billion (US$1.270 billion), which represented an increase of more than 100 percent over 10 years. In July, the firm divested its sandwich business.
Future growth of Cranswick
Looking ahead, the firm is on course for further growth, according to company executives.
“The Board believes that Cranswick remains well positioned to deliver our expectations for the current financial year and also to meet the challenges that may arise as it continues its successful long-term development,” Davey added.
Investment is planned to continue in the firm’s existing operations, including the completion of a further upgrade to its primary processing facility in Norfolk to meet USDA standards. Next to start is a new Continental Foods facility in Bury, Lancashire at an estimated costs of GBP25 million (US$31.2 million).
Cranswick’s international trade
Cranswick also reports strong growth in exports, with revenues from the trade with Asia running 83 percent ahead of last year.
Earlier this month, Cranswick announced it had enhanced its pig processing capability and established a significant presence in Northern Ireland through the acquisition of the issued share capital of Dunbia Ballymena. Dunbia Ballymena is a leading Northern Irish pork processing business with 360 employees that processes around 7,800 UK farm assured pigs each week.
Based in the UK, Cranswick was set up in the 1970s by farmers in East Yorkshire to produce animal feed. The firm has since evolved into a business focused on the supply of a range of food products to the UK food retail and food service sectors. The company is involved in the breeding and rearing of premium British pigs and also supplies fresh pork, fresh chicken, cooked meats, premium cooked poultry, air-dried bacon and gammon, continental products and pastry products. Products are sold primarily under retailers’ private labels.