Strong growth and the achievement of strategic growth form the headlines to the latest results from Cranswick plc. With its businesses including the production of pork, poultry meat, gourmet, and convenience products mainly of U.K. origin, the firm has been less impacted by COVID-19 than many others. Recent acquisitions in the pork and convenience sectors contributed to the firm’s results.
In the preliminary report for the year ended March 29, 2020 just released, it is stressed that the reporting period closed just one week after the U.K. entered the coronavirus lockdown period.
Key developments in the firm’s business over the year were summarized by Cranswick’s chief executive officer, Adam Couch.
“The last 12 months have seen us deliver key steps in our diversification strategy with the successful commissioning of our Eye poultry facility, and the acquisition of Katsouris Brothers which expands our non-meat activities,” he said. “We also completed two further acquisitions to increase our vertical integration in pork.”
Recent business developments
Cranswick reports that its world-class primary poultry processing facility in Eye, Suffolk, was completed on schedule in the third quarter, and successfully ramped up over the following three months.
Continuing investment in U.K. farming operations led the company to acquire Packington Pork, and White Rose Farms during the reporting year. These helped deliver further vertical integration, Cranswick reports.
Broadening its non-meat activities, the firm acquired North London-based Continental and Mediterranean food products supplier, Katsouris Brothers, in July of 2019.
Financial performance summary
For the 2019-20 fiscal year, Cranswick reported total revenue of GBP1.667 billion (US$2.053 billion). This represents an increase of 16.0% over the previous year’s figure of GBP1.437 billion.
On a like-for-like basis, the increase was 13.0%. This is the result of excluding turnover from the firm’s three recent acquisitions — Katsouris Brothers, Packington Pork, and White Rose Farms.
Of the Group’s total revenue, pork contributed 34%, convenience 36%, gourmet products 17%, and poultry 13%.
At GBP102.3 million, adjusted profit before tax was 11.2% higher than in the previous fiscal year.
For the year just ended, Cranswick reports total export revenue up 92%. Growth of 122% was recorded for revenue from Far East exports.
Impacts of COVID-19
In response to the coronavirus COVID-19 pandemic, Cranswick reports developing a proactive and comprehensive plan. Centered on keeping employees safe, feeding the nation, and supporting local communities, this included the provision of visors and screens at the group’s sites, as well as social distancing protocols, and new working patterns. Despite these measures, three of the company’s employees have died as the result of coronavirus.
With all livestock sourced from within the U.K.—and the company’s own pig herds and poultry flocks—there was no significant disruption in flows of raw materials to primary processing sites, or on to further processing facilities.
Cranswick reports its recent investments in expanding the Company’s pig herds, and increasing self-sufficiency has proved invaluable for its business.
More on Cranswick plc
Beginnings of the current company were in the early 1970s, when farmers in East Yorkshire joined together to produce animal feed. During the 1980s, the firm moved into food production. Since then, it has diversified to produce a range of high-quality, predominantly fresh food including pork, poultry meat, convenience and gourmet products.
From its headquarters at Hessle in the East Riding of Yorkshire, and with more than 11,800 employees, the company now operates four primary processing and 12 added-value processing facilities, including two feed mills. It supplies grocery multiples as well as the growing premium and discounter retail channels. As well as a presence in the “food-to-go” sector, Cranswick reports a rapidly growing export business.
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