The first half of the financial year has brought favourable news for Cranswick. The company has reported stronger than anticipated trading results.
Based in Hessle, Cranswick, a notable producer of poultry and pork, has shared this positive outlook with investors, indicating thriving performance in its core UK business.
Stronger than expected trading results in the first half have led Cranswick, the Hessle-based meat producer, to revise its profit outlook optimistically. The company, renowned for its poultry and pork, informed investors on the London Stock Exchange of continued volume growth across its principal UK operations over 26 weeks concluding in September.
Cranswick’s robust performance has been significantly bolstered by its expanded pig farming operations. The acquisition of North Lincolnshire farming business Elsham Linc for £31.7m has contributed notably to this growth.
The ongoing, multi-phased expansion of Cranswick’s Preston site, east of Hull, is another critical factor. This facility, which focuses on pig processing, is an essential component of the company’s broader expansion strategy.
Investment in production capabilities continues at Cranswick’s houmous factory in Worsley, Manchester, with a £23m fit out announced last year and completed in the first half.
The enhanced facilities are expected to drive higher production volumes, contributing positively to the company’s performance.
This strategic investment highlights Cranswick’s commitment to bolstering its production infrastructure to meet rising demand.
Cranswick’s Pet Products division has recorded a significant revenue increase compared to the previous year. This uptick follows a substantial supply agreement with a major national retailer.
The collaboration with Pets at Home, facilitated from Cranswick’s Lodge Farm facility in Lincoln, showcases the company’s versatile market presence.
The increased revenue from pet products reflects Cranswick’s strategic diversification and market adaptability.
Despite expressing caution regarding the current market and broader economic and geopolitical conditions, Cranswick remains optimistic.
Following the robust volume growth in the first half, the company expects the financial year ending March 29, 2025, to align with the upper end of market expectations.
Cranswick’s board remains confident in the company’s long-term success, attributed to strong customer relationships, high-quality products, and industry-leading infrastructure.
Cranswick’s share price has experienced notable growth over the past year, rising from 3,530p in September 2023 to 4,715p.
This positive trend reflects investor confidence in the company’s performance and strategic direction.
The company is set to release its interim trading results on Tuesday, November 26.
Cranswick’s optimistic outlook, driven by robust trading and strategic investments, indicates a promising trajectory for the rest of the financial year.
The company’s proactive expansion and diversification efforts are likely to sustain its favourable performance.
