Based in the United Kingdom (U.K.), food company Cranswick reports a double-digit increase in revenue for the three-month period just ended. This growth will supports ongoing and future investments in capacity expansion and improved operational efficiency.
For the first quarter of the financial year, Cranswick PLC has delivered strong growth overall across its food and other businesses.
Year-on-year growth in revenue was almost 15% compared with 2022-2023, reported CEO Adam Crouch.
As the rate of inflation shows signs of easing, he said that costs are being continuously managed, including by the introduction of expense-saving initiatives.
Overall, the group’s financial position at this point in the 2023-2024 fiscal year is described as “robust.”
Latest business developments
For each of the group’s food business sectors — Fresh Pork, Poultry, Convenience and Gourmet products — revenue in the U.K. is reported to be above that of a year ago.
While sales of cooked poultry were down year-on-year, this was compensated by strong growth for breaded products.
Cranswick reports that the sharp rise in feed prices following the Ukrainian invasion caused many of the country’s independent pig producers to cut back production — even cease farming. The resulting contraction on the national pig population has resulted in a rise in the average pig price over the quarter. Cranswick reports its self-sufficiency in pig supplies is now close to 50%.
The group’s export sales are lower year-on-year, with the Far East market described as “subdued.”
Following a GBP10-million (US$12.7 million) capital investment, Cranswick reports that its Pet Products business is making progress. Ahead of a launch into Pets at Home later this year, product stock are being built up.
As part of its efforts to improve its businesses, Cranswick reports ongoing progress delivering on its “Second Nature” sustainability strategy.
Prospects for the coming year
Looking ahead, Cranswick’s board remains cautious about the coming market and economic conditions. However, it is forecasting results for the group will be ahead of earlier expectations for the year to March of 2024.
Meanwhile, the group says it will continue to invest in expansion and improved operating efficiency, with a current focus on retail packaging and slow-cook capacity.
For its Poultry business, investment will focus on increasing capacity for cooking and roasting.
As well as boosting efficiency, the main target for Cranswick’s investment in its Pork business will be in expanding primary processing.
More on Cranswick PLC
Having slaughtered 67.6 million broilers last year, Cranswick is the sixth largest poultry producer in the U.K., according to WATTPoultry.com’s Top Poultry Companies survey.
In its last end-of-year report, revenue for the group's poultry business increased by 6.7% year-on-year, and represented about 18% of the company’s total.
Based in the U.K., Cranswick PLC is a leading supplier of premium, fresh, and added-value food products. With a workforce of around 13,700 people, it operates 22 production facilities.
Founded in the early 1970s by East Yorkshire farmers, the company initially focused on animal feed production. Its business has since expanded to cover mainly fresh foods, such as fresh pork, poultry, convenience and gourmet products, as well as pet food. Sales are to major grocery multiples and discount retailers. As well as a presence in the “food-to-go” sector, Cranswick has a substantial export business.
For the year to March of 2023, the Group reported revenue of over GBP2.32 billion, and profit before tax of almost GBP140 million.
