FTSE-listed pork and poultry specialist Cranswick’s Christmas period was “comfortably ahead of 2020” but it has warned of over-supply issues in pig rearing.
The Hull-headquartered business, a huge supplier to supermarkets and major food service outlets, looks set to become a £2 billion turnover entity when full year results are published in May.
A trading statement was issued to the City today for the 13 week period to December 25, with trading in line with expectations despite ongoing Covid issues and cost inflation challenges. It comes days after a move into the pet food market, with the buy-out of Lincolnshire business Grove Pet Foods.
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Chief executive Adam Couch said: “We have delivered another strong quarter of growth during which we have supported our customers by delivering excellent service levels to ensure full availability of our products.
“Our performance, which built on the positive and sustainable progress delivered in the first half of the year, reflected the unstinting commitment and dedication of our colleagues across the business and I thank them for their continued support in what continues to be an incredibly challenging operating environment.
"Our outlook for the current year is unchanged and we have a solid platform from which to continue Cranswick's successful long-term development."
Mr Couch said UK retail demand remained strong during the quarter, with a “continued shift towards greater in-home consumption resulting from the Covid-19 pandemic”.
Half year revenues of £993.1 million were revealed in November, with the company traditionally higher in the second half of the year.
“Performance over the festive trading period was robust and comfortably ahead of the same period in 2020, reflecting a well-executed Christmas plan, supported by exemplary service levels to our customers, with unprecedented industry wide labour and supply chain challenges continuing to be well managed,” the statement said, telling how substantial and widespread cost inflation was proactively mitigated through tight cost control and ongoing recovery.
Far East export sales were, as anticipated, lower than the same quarter last year due to market prices falling back from prior elevated levels and the ongoing suspension of its Norfolk primary pork processing facility's China export licence. This time last year the expectation was that the Covid-related ban would be lifted in weeks, as a Northern Ireland suspension had been.
On the industry situation Cranswick told how the UK pork sector “continues to face operational and commercial challenges with the supply of pigs at times exceeding demand and processing capacity”.
The company is working with the wider farming community to reduce the backlog of pigs on farms and has increased processing numbers.
“Given the magnitude of this industry issue, we continue to lobby the government for sector support to help alleviate the backlog, including the reinstatement of Chinese export licences and addressing the acute shortage of skilled butchers,” Mr Couch added.
In Hull, work on the £31 million breaded poultry facility is “progressing to plan” with commissioning expected in the spring. Revealed in May last year, 200 jobs are being created at the firm's Helsinki Road campus.
“We are making good progress in developing the new business pipeline in this attractive and meaningful category,” Mr Couch added.
Across the business, investment continues at pace to add capacity, capability and drive operating efficiencies to maintain whilst maintaining industry leading standards at all our facilities.
Water consumption is a big focus.
