British meat producer Cranswick forecast its annual profit towards the upper end of market expectations on Friday, helped by strong volume growth of its core UK food business.
The 50-year-old firm, which traces its roots to a pig-farming collective in Yorkshire, has seen positive momentum in volume growth driven by domestic demand for its products and the group's expanding pig-farming operations.
Cranswick, which produces fresh pork, bacon, gourmet sausages, poultry items and continental foods, said it expects trading in the first half of the year to be ahead from a year ago.
Pre-tax Profit
The company is expected to post adjusted pretax profit between £179.2 million and £191.7 million (€215.25 million and €230.29 million) for the financial year ending March 29, 2025, according to a company compiled consensus.
Shares of Cranswick, which produces fresh pork, bacon, gourmet sausages, poultry items and continental foods and supplies to supermarkets, were up nearly 6% at 4995 pence (4995 cents) by 8am on Friday, having risen about 31% since the start of the year.
UK's consumer sentiment is seeing a gradual return to premium products as rising cost pressure ease and consumer budgets improve amid a cost-of-living squeeze, analysts at Peel Hunt said.
"We should not be too surprised at the upgrade," said Jefferies analyst Andrew Wade, adding that they expect first quarter's robust volume growth to continue through the first half of the year.
In July, the company had reported robust first-quarter revenue as strong demand for its premium ranges had offset lower meat prices in Asia and Europe.
Robust Demand
At the time, the company reported higher first-quarter revenue as strong demand for its premium ranges offset lower meat prices in Asia and Europe.
In May, Cranswick reported better-than-expected earnings for fiscal year 2024 on the back of robust demand and a string of investments in facilities that paid off.
Reacting to the update earlier in the year, Adam Couch, chief executive officer of Cranswick, commented, "Over the last 12 months we have strengthened our asset base, substantially expanded our farming operations, enhanced market positions and developed new customer relationships.
"We continue to make good progress against each of our strategic objectives and we are well placed to continue our successful development in the current financial year and over the longer term."
Additional reporting by ESM
