This equated to a 25% increase in adjusted group operating profit, which reached £85.5m for the 26 weeks up to 23 September 2023.
Such strong growth in revenue was driven by resilient volume sales across all four of its core UK food categories. As a result, the meat and poultry manufacturer projects its full year results to be at the “upper end of current market consensus”.
Cranswick invested almost £40m in order to add capacity, capability and drive operating efficiencies during H1 and has now invested more than £600m in its asset base since FY16.
This includes a £62m expansion project now underway at its Hull pork primary processing site, a £23m fit out of its new houmous facility near Manchester and the £31.7m acquisition of indoor pig farming business Elsham Linc.
Cranswick engaged in substantial ongoing investment
Chief executive Adam Couch explained that Cranswick’s “relentless focus on quality, service and innovation” underpins its results.
“Momentum has continued through the start of the third quarter as our customers and the UK consumer continue to appreciate the affordability, value for money and versatility of our core pork and poultry categories,” he added.
“Our continued positive progress is made possible by the substantial ongoing investment in our asset base, expansion of our pig farming operations and the quality and capability of our colleagues across the business.”
Couch said that the firm has an “excellent track record” of investing in its asset base and this has allowed it to deliver “efficiency improvements” in a challenging economic environment.
“Notwithstanding the many challenges that we, our industry and the wider economy continue to experience, I am confident that the strengths of our business, which include its diverse and long-standing customer base, breadth and quality of products and channels, robust financial position and industry leading infrastructure, will support the further development of Cranswick in the current financial year and over the longer term,” he concluded.