Cranswick: Hummus and chicken demand boost supermarket supplier
Supermarket supplier Cranswick has beaten profit expectations due to strong demand for fresh products and two meaty acquisitions.
The FTSE 250 company told markets this morning that revenue grew 6.8 per cent in the 52 weeks to March 29, from £2.6bn to £2.73bn.
Its share price ticked up two per cent in early trades following the results.
Adjusted operating profit grew 14 per cent to £206.9m, while adjusted profit before tax grew 14.3 per cent to £197.9m.
The company grew its profit margin by 0.48 per cent due to a “strong contribution from growing agricultural operations, excellent capacity utilisation and tight cost control”, it said.
Poultry revenue rose by a fifth, while fresh pork export revenue rose by 10.2 per cent.
It signed a number of long-term strategic partnerships during the year, including 10 years sole supply of British fresh pork, sausage, premium bacon and cooked meats with Sainsbury’s.
Cranswick’s meaty acquisitions
Cranswick completed two acquisitions, a £24m acquisition of pig genetics producer JSR Genetics and a £32m acquisition of food service sausage manufacturer Blakemans.
The acquisition of JSR was to “reinforce supply chain resilience” and offset a contraction in UK pig herds, the company said.
CEO Adam Crouch said the company had made “significant strategic and financial progress” during the year.
“We have also continued to make substantial investment across our industry leading asset base, our farming operations and in acquisitions to support our long-term growth ambitions,” Crouch said.
Capital spend reached £138m, with projects including £25m on a houmous and dips facility in Worsley and £29m on the expansion of two added-value Hull poultry sites.
“We have made a positive start to the new financial year with the UK consumer continuing to recognise the quality, value and versatility of our pork and poultry product ranges.
“Looking further ahead, I am confident that the strengths of the business which include its long-standing customer base, breadth and quality of products, robust financial position and industry leading asset infrastructure will support the successful development of Cranswick in the current financial year and over the longer-term,” Crouch said.