Cranswick reports half-year revenue close to GBP1 billion

Learn about the revenue growth U.K. pork and poultry company Cranswick has experienced in the first six months of its 2022 fiscal year.

(Courtesy Cranswick)
(Courtesy Cranswick)

Revenue achieved by pork and poultry producer and processor Cranswick plc amounted to GBP993.1 million (US$1.31 billion) for the 26-week period to September 25, 2021. This figure is equivalent to a 6.6% increase year-on-year, and 6.4% on a like-for-like basis.

According to chief executive officer Adam Crouch, the firm delivered growth in both revenue and earnings despite the “incredibly challenging operating environment.”

At GBP69.6 million, adjusted operating profit was 12.3% up on the year, while the operating margin was 35 basis points higher at 7.0%. Pre-tax profit was reported as GBP68.3 million — an increase of 12.5%. This performance helped drive earnings per share up by 11.5%.

Latest commercial developments

A recent expansion in the capacity of its premises in Eye in Suffolk  led to a significant increase in sales by its poultry division, the company reported. In early 2023, a GBP9-million facility to produce breaded poultry products is scheduled to come into operation as part of a GBP41-million capital expenditure plan. 

To support its non-meat business, the firm has recently acquired two complementary businesses in the Convenience category. These were Ramona’s Kitchen and Atlantica UK., which specialize in the manufacture of plant-based foods, and import tortillas, respectively.

With its latest half-year statement, Cranswick reported it is managing both cost inflation, as well as labor and supply chain challenges. 

Investment in sustainability

Crouch reported that the company continues to make progress on delivering its “Second Nature” sustainability strategy. Among the highlights, he included the achievement of carbon-neutral status at all 14 of the company’s eligible manufacturing facilities.

He also confirmed Cranswick’s commitment to purchasing 100% deforestation-free soy for its animal feeds. This is expected to bring a reduction of around 20% in carbon compared to the previous system.

Earlier this year, it was reported that the firm’s poultry site in Hull had received Carbon Neutral specification. This development brings the company one step closer to achieving its target of Net Zero by 2040. 

Around one month ago, Cranswick was among the U.K. companies and organizations that have joined together to establish standardized metrics to measure environmental performance in the food and drink sector. 

More on Cranswick plc

Cranswick is one of the largest food producers in the U.K., according to the WATT Poultry Top Companies database. It supplies fresh pork, chicken, cooked meats and other food products, and has a growing export business.

According to the firm’s latest half-year report, group revenue is broken down as follows: 27% Fresh Pork, 39% Convenience foods, 19% Poultry, and 15% Gourmet products. 

Compared to the same period of the previous year, revenue through its Fresh Pork business was down by more than 5%. The company attributed this fall to reduced exports to China, and to the suspension of the export license from one of its sites due to the coronavirus (COVID-19) pandemic. Its Poultry sales were more than 35% higher, while the Convenience and Gourmet products sectors achieved growth of around 5% year-on-year.

Of all the company’s sales in the six-month period, 77% were through the retail channel. Wholesale accounted for 11%, exports for 8%, and food service for 3%.

For the full 2022 fiscal year, Cranswick expects to invest around GBP100 million.

Among other areas, this will target pig and poultry supply chains to expand animal numbers, ensure animal welfare, and drive efficiencies. For its fresh Pork business, GBP5 million is being invested in an automated deboning line and a further GBP1 million for a new effluent plant. Meanwhile, the Poultry business has received GBP2 million of capital expenditure to expand capacity at the Eye plant, and a further GBP1 million has been spent on the Cooked Poultry division.

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