One of the leading food producers in the United Kingdom (U.K.) has announced new investment that will see it further expand its poultry products business.
Among the business developments by Cranswick PLC in recent months has been a greater focus on its poultry meat operations.
In the report of the firm’s unaudited results for the first half of the current fiscal year, CEO Adam Crouch confirmed Cranswick’s commitment to growing its vertically integrated poultry business.
He announced plans to invest GBP20 million (US$25 million) to boost the processing capacity of its fresh poultry meat operations in eastern England, and add to the ongoing investment program at two further processing facilities in East Yorkshire.
Over the reporting period, Crouch referred to a further pig farm acquisition and to organic growth, which have resulted in Cranswick now being the U.K.’s largest pig farming business. Its pig output was up by 18% compared with the same period of last year. With weekly production of 34,000 pigs, the firm now supplies more than half of its pork processing requirements.
Strong first-half year performance
“We have delivered another strong first half performance with good volume-led growth through capacity expansion, and market share gains from close alignment to our key long-standing customers, and a relentless focus on quality and industry-leading service levels,” said Crouch.
For the 26 weeks to September 28, 2024, Cranswick reports revenue of almost GBP1.33 billion. That represents a year-on-year increase of 6.1%, or 5.8% on a like-for-like basis.
This development helped to drive adjusted group operating profit up by 16.5% compared with the same period of last year to GBP99.6 million. Operating margin for the period was 7.5% — up from 6.8% in the comparable period.
Group operating profit and profit before tax for the six months were up 3.5% and 3.8%, respectively.
From its core food business, revenue for the half-year was up 6.4% on 7% volume growth. For its poultry operations, Cranswick reports year-on-year revenue growth for the reporting period of more than 16%, while sales from its pet food division were up by more than 71%.
Crouch reported that the outlook for the full financial year — to March 29, 2025 — remained in line with current market expectations.
More on Cranswick PLC
Annual slaughtering of around 59.4 million birds puts Cranswick among the leading poultry companies in Europe, according to WATTPoultry.com’s Top Poultry Companies survey for 2023.
Earlier this year, the company reported strong trading during the first three months of the financial year.
Last month, Cranswick concluded an 18-month program to identify and nurture operational talent in its workforce.
The firm has also recently participated in a scheme to recycle old footwear and clothing for children’s playgrounds.
