Commenting on the new Eye factory, Cranswick ceo Adam Couch said: “This class-leading facility, which is scheduled for completion in late 2019, will double our existing capacity with further room for expansion.
“The facility will incorporate the highest animal welfare standards and latest generation production techniques and equipment to drive operational efficiency gains.”
The company is now seeking the board of directors’ approval for the new primary poultry facility.
Cranswick planned to invest a further £13M to upscale its existing milling and hatchery facilities.
Invest a further £13M
The meat firm’s interim results also revealed its sales were up 23% to £714.6M compared with last year, while like-for-like sales grew 18%.
Cranswick’s adjusted profit before tax was 17.2% higher at £44.4M compared with the same period last year. Adjusted earnings per share for the company were up 20.1% to 70p.
The company also revealed it had spent £29M in the first half of the 2017/18 financial year to add capacity, extended capability and drive efficiencies.
Cranswick’s Fresh Pork division sales, which represented 34% of the company’s sales, rose by 26.3%. Excluding the contribution from Northern Ireland meat business Ballymena, which was acquired during the previous financial year, like-for-like sales growth was 12.8%.
Total export sales grew by 30.1%, with a decline in sales to Far Eastern markets of 7.9% – offset by a 133.2% increase in sales to other export markets. Cranswick said this was most notable in the US and Europe.
Increase in sales to other export markets
Growth in these two markets reflected stronger volumes and higher prices resulting from sterling weakness against the US dollar and the euro, said Cranswick.
Convenience, which comprised Cranswick’s Cooked Meats and Continental Products, represented 37% of Group sales.
Convenience revenue increased by 17.2% reflecting new contracts secured by the business in the previous year, according to Cranswick, with Growth ahead of the overall market.
Meanwhile, in September, Cranswick revealed plans to recruit 33 new workers, including 20 roles across a number of departments, and 13 apprentices.
William Reed’s export conference
Designed to help food and drink manufacturers boost sales in global exports markets, The Food Xport Conference will take place at Ardencote Manor, Warwickshire on February 8 2018.
Staged by the Food Manufacture Group and sister titles British Baker and Meat Trades Journal, the one-day conference will include key advice from food and drink exporters.
There will also be guidance on how to find help available from government, legal considerations and way to identify the best overseas markets for your product category.
Read the conference programme here and full list of speakers here.