Meat producer 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.
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 year-on-year,' analysts at Shore Capital wrote in a note.
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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 (21 May), although they are up over 12% so far this year.
Cranswick reported adjusted profit of £176.6 million (€206.6 million) for the year ended 30 March, beating expectations of £170 million (€198.9 million).
Revenue for the full year was £2.60 billion (€3.04 billion), a touch higher than estimates of £2.59 billion (€3.03 billion).
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."
News by Reuters, additional reporting by ESM.
