Cranswick said it had strengthened its Convenience category during the latest half-year period with the complementary bolt-on acquisitions of Ramona’s Kitchen, a supplier of authentic Mediterranean plant-based foods; and Atlantica UK, a supplier of Spanish tortillas. In its interim statement it said the positive progress made during the period highlighted the 'robust and sustainable nature of our business model'.
Growth has continued in the domestic market with ongoing elevated retail demand compensating for the current reduced level of revenue from its Far Eastern export markets, said Cranswick, winner of Food Manufacture Company of the Year, in the 2021 Food Manufacture Excellence Awards.
Supply chain challenges, cost inflation
The 'unprecedented, well-publicised, industry-wide labour and supply chain challenges' and the cost inflation it is experiencing were being proactively managed and recovered, it added.
The Hull cooked bacon facility was successfully commissioned at the beginning of the period and was performing to plan. Work on the new breaded poultry facility in Hull was 'progressing well' and, when completed in the 2023 financial year, it would be the fourth new-build production facility commissioned in the last five years.
The company said 'exceptionally strong' poultry revenue growth and good progress in its Convenience and Gourmet Product categories was partly offset by lower fresh pork revenue, with lower retail and export revenue partly compensated by more volume directed into the domestic wholesale market.
“We have made further positive and sustainable progress during the first half of the year, delivering revenue and earnings growth in an incredibly challenging operating environment,” said Adam Couch, Cranswick’s chief executive officer.
“We continue to invest in the long-term sustainability of our business. We have made excellent headway in delivering our Second Nature sustainability strategy with several major milestones reached during the period. These include achieving carbon neutral status across all 14 of our eligible manufacturing facilities and committing to purchasing 100% deforestation-free soya which we expect will result in a c.20% reduction in carbon compared to the previous system.”
Cranswick is a finalist for the newly launched Sustainability Award in the 2022 Food Manufacture Excellence Awards and the Cranswick Country Foods Poultry despatch team is also shortlisted for the Site Team of The Year Award. Winners will be announced on 10 February 2022 at a black-tie dinner at London Hilton Bankside. Reserve your tickets to network with the food industry's leading lights now.
Cranswick could more than triple primary poultry processing capacity in ten years to 4.5m birds a week, building on its 'formidable' poultry facility at Eye in Suffolk, according to prominent analysts.
Despite an 'incredibly challenging operating environment', Cranswick revealed total revenue in the six months ended 25 September 2021 stood just shy of £1bn at £993.1m, 6.6% higher than the £931.6m reported in the corresponding period last year.
Adjusting for the acquisition of Atlantica UK in June 2021 and Ramona’s Kitchen in August 2021, the increase in sales on a like-for-like basis had been 6.4%, the company said. Adjusted profit before tax for the period at £68.3m was 12.5% higher than the £60.7m in the corresponding period last year.