Cranswick says ongoing investment is reflected in its Q1 results
In its Q1 trading statement, pork and poultry processor Cranswick says its accelerated investment in automated projects and cost saving initiatives continue to drive its competitive advantage.
The results for the 13 weeks to 24th June 2023 revealed that its revenue was 14.7% ahead of the same period last year and its outlook for the current financial period is now expected to be ahead of the Board’s previous expectations.
Investment
Ongoing investment in retail packing, slow cook capacity and other expansion and efficiency projects are reported to be well underway. Additional investment in its Cooked Poultry site is set to increase cooking and roasting capacity and through innovation Cranswick claims it will enhance its ability to deliver value-add products in the category.
The business said it expects planned capital investment to add substantial capacity to its pork primary processing operations and drive further efficiencies as it looks to service its growing value-added pork business.
The UK pig herd has contracted significantly over recent months in response to the rapid escalation in feed costs following the outbreak of war in Ukraine in 2022. As a result, many independent producers have chosen to cut back or cease production entirely in response to the unprecedented inflationary pressures. This sustained tightening of supply resulted in the average UK pig price across the quarter increasing by 28% compared to the same period last year.
Cranswick’s self-sufficiency is said to now be approaching 50% and it says it will continue to invest in and expand its pig herd to ensure it has the required quantity and quality of pigs to service its customers’ requirements.
The business also expects further sector consolidation, and intends to continue to expand its farming capability to ensure continuity of supply, full farm-to-fork traceability, leadership in response to the challenges of sustainability and maintaining the highest animal welfare standards.
Commenting on its Q1 results Adam Couch, CEO of Cranswick, said: “Our continued positive progress reflects the substantial ongoing investment in our asset base and the quality and capability of our colleagues across the business.”
He continued: “We have made a strong start to the year, delivering another quarter of growth during which we have again supported our customers by providing excellent service levels to ensure full availability of our products. None of this would have been possible without the incredible support of our colleagues across the business and I thank them for their continued commitment and dedication.”
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