Cranswick has made a strong start to its financial year thanks to consumer demand for “a healthy, protein rich and nutritionally balanced diet”.
Revenues increased 5.5% in the 13 weeks to 27 June, driven by an 8.2% bump to volumes. Stripping out the boost from acquisitions, like-for-like sales in the first quarter rose 4% on volumes up 6.4% as the group passed on savings from lower input costs to its customers.
Cranswick said poultry revenues grew strongly thanks to continued strong retail demand for fresh chicken and capacity expansion at its Suffolk factory.
Domestic fresh pork sales were also ahead of the first quarter a year ago as double-digit retail volume growth offset subdued export demand from China and other global markets. Cranswick struck a joint venture agreement with The Jolly Hog in the quarter to boost its presence in the premium end of the category.
Sales of convenience and gourmet products were up year-on-year, with particularly strong houmous and dips revenue growth following new retail listings, while Cranswick’s pet offering was also “well ahead” of the same period last year thanks to the ongoing expansion with Pets at Home.
Cranswick maintained its outlook for the year ahead despite uncertainties in the Middle East and a new Prime Minister in the UK.
“We have made a positive start to the year, delivering volume-led revenue growth across the business,” CEO Adam Couch said.
“We continue to support our strategic partners by providing excellent service levels, alongside unrivalled product quality and innovation.
“Our poultry business is growing strongly and the significant investment we are making in our Eye facility will create the headroom for further expansion in this exciting category.
“Our continued compounding growth reflects the increasing competitive advantage of our vertically integrated supply chain and record capital deployment across our asset base to increase capacity, add capability, drive efficiencies and deliver strong returns.”
No comments yet