Robust demand, string of investments paying off
22 May 2024
2 minute read
Meat producer Cranswick reported better-than-expected earnings for fiscal year 2024 on Tuesday, on the back of robust demand and a string of investments in facilities that paid off, reported Reuters.
The 50-year-old firm, which traces its roots to a pig farming collective in Yorkshire, has been heavily investing in expanding production capacity and product lines to diversify revenue sources.
A bright spot for food producers in the UK has been the positive uptick in consumer spending, particularly reflected in the strong Christmas season.
Positive recovery in pig prices underpinned with easing inflationary pressures helped offset the disappointing performance of its newest ‘Pet Products’ segment and weak export sales, Cranswick said.
“Outside the UK, Cranswick still does not have the licenses it needs due to ineffective Government interest to export more to China; consequently FY24 exports fell YoY,” analysts at Shore Capital wrote in a note.
Cranswick, which produces fresh pork, bacon, gourmet sausages, poultry items and continental foods, said trading in the current year was in line with expectations so far.
“Looking forward, we anticipate further sector consolidation, and Cranswick is committed to expanding its farming capability to ensure the continuity of supply, sustainability leadership, and the highest animal welfare standards,” the company said.
Shares in the FTSE 250 firm were down nearly 4% on Tuesday, although they are up over 12% so far this year.
Cranswick reported adjusted profit of 176.6 million pounds ($224.4 million) for the year ended March 30, beating expectations of 170 million pounds.
Revenue for the full year was 2.60 billion pounds, a touch higher than estimates of 2.59 bln pounds.
($1 = 0.7869 pounds)