Cranswick to boost investment as demand for meat grows

Cranswick is accelerating investment in boosting factory capacity as demand for its meat continues to grow.

The pig and poultry processor saw group revenue rise 9.7% in the 13 weeks to 28 June, largely driven by strong volume growth.

Its acquisition of sausage manufacturer Blakemans in May also boosted sales.

As a result, Cranswick said it was accelerating the pace of capital expenditure to add capacity, expand capability, and drive operating efficiencies across its 23 factories and farming operations.

It also committed a further £14m at its Lincoln Pet Products site to increase capacity and broaden its product range, having secured new business for its petfood.

Cranswick recently expanded its sales to Pets at Home by securing a deal to supply its premium own-label business from later in the year.

Exports are also improving after a licence to ship to China was reinstated for its Norfolk pork factory in December 2024.

Poultry sales rose due to the onboarding of new premium retail business, alongside continued strong demand from a primary retail customer, the business said.

“We have made a strong start to the year, delivering volume-led revenue growth across all product categories,” said CEO Adam Couch.

“Our continued positive progress reflects the substantial ongoing investment in our asset base and the quality and capability of our colleagues across the business.”

Couch added an independent expert veterinarian-led review into the company’s animal welfare compliance practices was now “well advanced” and it would provide a further update “in due course”.

Cranswick launched a review in May following accusations of mistreatment of pigs at one of its farms.

The video from one of its farms in Lincolnshire led supermarket customers to suspend supplies of pork from the farm and caused a share price crash that cut £200m from the company’s value. The losses were recovered within two weeks.

Its share price is now trading on a price-to-earnings ratio over 20. ”A premium rating but the group continues to demonstrate why,” said Peel Hunt analysts.