The meat products specialist also said recent acquisitions have performed better than expected
Cranswick enjoyed strong third quarter trading.(Image: Getty Images/iStockphoto)
Record Christmas trading has spurred confidence at meat producer Cranswick, which is on track for pre-tax profits of up to £216m.
Bosses at the Humber firm say full-year profits are expected to be at the upper end of estimates thanks to sales across its fresh pork, convenience and gourmet festive product ranges. A third quarter trading update issued to investors on the London Stock Exchange showed sales were even ahead of the strong 2024 festive period.
It pointed to premium, added-value ranges including festive grazing platters as particularly strong performers. Poultry revenue was significantly ahead of the previous year thanks to stronger fresh poultry pricing on the back of welfare-minded lower density production and the setting up of a premium retail business at the firm’s added-value, cooked and prepared poultry sites.
Meanwhile, pet products revenue grew strongly following growth in Cranswick’s supply deal with national chain Pets at Home. It said the recent acquisitions of Staffordshire-based sausage maker Blakemans, East Yorkshire pig breeding business JSR Genetics and Fridaythorpe feed mill will continue to drive its positive momentum, with performance said to have been better than expected.
Cranswick also said it had made significant progress on its pipeline of major projects which are intended to boost capacity and capabilities at some of its top production facilities. It expects full year capital expenditure to be in the region of £160m-£170m.
As a result of the spending and a usual seasonal uplift in working capital, net debt increased in the third quarter but with the expectation pit will reduce by the year end. Cranswick bosses pointed to £360m of unsecured financing which they said provided good headroom to fund future growth and investment.
Adam Couch, CEO of Cranswick, said: “We have delivered another strong quarter of growth underpinned by revenue growth across all product categories and a record Christmas trading period. This excellent performance is the result of our unrelenting focus on delivering outstanding service levels, sector leading innovation and unrivalled product quality across our festive product range for our customers.
“I would like to thank all of our colleagues for their ongoing support and commitment. The unrivalled capability of our people across the business is key to our continued successful progress and development.”
