Strong First Half Performance By Cranswick
UK food producer Cranswick has reported record sales for the six months ended 30 September and a 24% rise in adjusted profit before tax to £37.9 million from £30.6 million in the corresponding period last year. Total revenue from continuing operations in the period to 30 September 2016 at £580.8 million was 16% ahead of the same period last year, driven by strong volume growth across most product categories. The profit and revenue figures include the contribution from Crown Chicken following its acquisition on 8 April 2016. Underlying revenue was 8% higher than the same period last year with corresponding volumes 16% ahead. New contract wins and a greater number of pigs being processed through Cranswick’s two primary processing facilities underpinned the strong volume growth.
In addition to the breeding and rearing of premium British pigs, Cranswick supplies fresh pork, fresh chicken, cooked meats, premium cooked poultry, air-dried bacon and gammon, continental products and pastry products, and is well known for the production of gourmet sausages. Products are sold primarily under retailers own labels including Sainsbury’s ‘Taste The Difference’ and Tesco’s ‘Finest’ as well as under a number of brands such as ‘Simply Sausages’, ‘The Black Farmer’, ‘Bodega’, ‘Welly’ and ‘Woodall’s’. Sales from continuing operations in the year to March 2016 were £1.016 billion and have grown more than 100% over ten years.
The strategically important acquisition of Crown Chicken at the beginning of first half was followed in July by the sale of Cranswick’s sandwich business to Greencore, the UK and international convenience foods group. Cranswick now has a focused portfolio of high growth, premium product categories, which are produced from well invested highly efficient facilities. Indeed, developing high quality, great tasting, innovative food products, which are ideally suited to the fast moving food-to-go and convenience formats is a key component of Cranswick’s evolving growth strategy.
On 16 November, after the period end, Cranswick acquired Dunbia Ballymena, a leading Northern Irish pork processing business. The acquisition strengthens Cranswick’s UK pork processing business and provides greater control over the supply chain.
Corporate activity was augmented by over £24 million of capital investment during the first half of Cranswick’s financial year to add capacity, new capability and drive further operating efficiency gains. Cranswick has now invested in excess of £200 million in its infrastructure over the last eight years.
Martin Davey, chairman of Cranswick, comments: “The business performed strongly during the first half of the year. Crown has made a particularly positive contribution to the business, is combining well with the group’s pre-existing poultry activity and is being integrated in line with plan.”
He adds: “Cranswick has made further commercial and strategic progress during the period whilst working closely with customers to maintain its focus on service, quality and innovation in delivering appealing and competitively priced products to the consumer. The board believes that Cranswick remains well positioned to deliver our expectations for the current financial year and also to meet the challenges that may arise as it continues its successful long-term development.”
