British meat producer Cranswick has raised its annual forecast, betting strong UK demand for fresh pork and gourmet products would help offset a drag from weaker export volumes.
The Yorkshire-based company has been investing heavily in expanding production capacity and product lines to diversify revenue sources. It recently moved into the pet foods business.
'Resilient Demand'
'The group has made a strong start to the year, with momentum continuing into the second quarter with demand remaining resilient in our core UK categories,' Cranswick said in a statement.
Meanwhile, revenue rose 14.7% in the first quarter ended June 24, from the same period last year.
The company said tightened pig supply in the UK following the Ukraine war pushed average pig prices up by 28% in the reported quarter.
'Cost inflation continues to be proactively managed and mitigated through tight cost control and ongoing recovery, albeit the rate of inflation is now starting to slow,' the company said.
'Full Availability'
"We have made a strong start to the year, delivering another quarter of growth during which we have again supported our customers by providing excellent service levels to ensure full availability of our products," commented chief executive Adam Crouch. "None of this would have been possible without the incredible support of our colleagues across the business and I thank them for their continued commitment and dedication.
"Our continued positive progress reflects the substantial ongoing investment in our asset base and the quality and capability of our colleagues across the business."
Additional reporting by ESM
