Cranswick reports strong growth for 2022 so far
Cranswick has reported that UK revenue across all four of its food product categories was ahead year-on-year, according to the latest trading figures by the processor.
The UK food producer has provided an update on trading for the 13 weeks to 25th June 2022.
Revenue over this period was 7.6% ahead of the same period last year. Excluding the contribution from acquisitions made in the prior year, revenue on a like-for-like basis was 5.8%, with “strong growth” in its core UK market partly offset by expected lower export revenue.
Cranswick added that substantial and widespread cost inflation continues to be “proactively managed and mitigated through tight cost control and ongoing recovery.”
It reported that Far East export sales were lower than the same quarter last year due to market prices falling from the elevated levels experienced over the previous two years and the ongoing suspension of its Norfolk primary pork processing facility’s China export licence.
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. Cranswick said it has reflected these higher input costs in the price it pays to both its farming operations and its third party producers.
According to the report, net debt was moderately higher than the March 2022 year end position, reflecting the Group’s ongoing capital investment programme and the impact of inflation on both biological assets and net working capital.
It said: “The Group remains in a robust financial position with committed, unsecured facilities of £250 million providing comfortable headroom.”
The outlook for the current financial year remains in line with the Board’s expectations.
A positive start
Adam Couch, CEO of Cranswick, commented: “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.”