Cranswick makes “positive start” to the year: Trading update

03-Aug-2022 - Last updated on 03-Aug-2022 at 09:06 GMT

Cranswick reported a strong start to the year in its latest financial update

Food producer Cranswick has revealed that "substantial and widespread" cost inflation is being "proactively managed" by the company.

In an update on trading for the 13 weeks to 25 June 2022 it said it had mitigated the impact through tight cost control and ongoing recovery.

Revenue in the 13 weeks to 25 June 2022 was 7.6% ahead of the same period last year. UK revenue across all four food product categories was ahead year-on-year.

It revealed that the UK pig price increased by 27% during the period, reflecting the rapid response to the sharp rise in feed prices with wheat and soya reaching all-time highs.

The company said that with the support of its customers, it has reflected the higher input costs in the price its pay to both its own farming operations and third- party producers.

Investment

Cranswick said it would continue to “invest at pace” across its asset base to support future growth and further operating efficiencies.

It has started pre-production trials at its new £32m Breaded Poultry facility in Hull, with full commercial roll-out starting in the first weeks of this quarter. Initial interest from retail, food service and Quick Service Restaurant customers “has been strong,” it said.

The outlook for the current financial year remains in line with the Board’s expectations and it is confident on its strengths which include its long- standing customer relationships, breadth and quality of products, robust financial position, and industry leading asset infrastructure, would support the further successful development of the group during the current year and over the longer term.

Positive start

Grove Pet Foods, which it purchased at the beginning of the year, made a modest contribution to reported Group revenue during the quarter.

Adam Couch, ceo of Cranswick, said: “We have made a positive start to the year notwithstanding the challenging operating conditions we continue to experience. Our capital investment programme remains firmly on track as we build the platform to deliver our long-term growth strategy and we continue to make meaningful progress in delivering our Group-wide 'Second Nature' sustainability strategy.

“The professionalism and commitment of our colleagues across the business is the foundation on which our successful performance is based and as always, I would like to thank them for their continued dedication and support.”

This comes last month as workers at Cranswick’s Bury site went on strike in a dispute over pay and working conditions.