Cranswick celebrates a bumper Christmas

The UK pig price continued to ease back during the last three months of 2017

The Hull-based firm said both total and like-for-like revenue rose in the last three months of 2017 as people splashed out on affordable luxuries in the run up to Christmas.

While many consumers are cutting back on big ticket items like new cars and sofas, they are treating themselves to more expensive food items.

Cranswick reported growth across all of its categories and said export sales are also well ahead, following the fall in the pound and strong demand from countries like China and the US.

The UK pig price continued to ease back during the period, ending the quarter at a similar level to that of a year earlier. Cranswick said this downward trend is being reflected in selling prices.

Overall, the group said trading during the third quarter of the financial year was slightly ahead of the board’s expectations.

Cranswick is investing at record levels across to increase capacity, add new capability and drive operating efficiencies.

The group said construction of its new Continental Products facility, based at Bury in Lancashire, is well advanced and progressing to plan, with completion expected in the first half of the next financial year. When finished, the site will consolidate production from the group’s two existing Continental Products facilities, raise capacity by around 70 per cent, add new capability and drive efficiency improvements on existing product ranges.

Plans for a new primary poultry facility in Eye, Suffolk are being developed, with construction, subject to receiving planning approval in the coming weeks, expected to begin in the first quarter of the next financial year. The new facility, which is scheduled for completion in late 2019, will double existing capacity with further room for expansion. The facility will incorporate the highest animal welfare standards and latest generation production techniques and equipment to drive operational efficiency gains.

In a trading update, the group said: "With experienced management at all levels of the group, a strong range of products, a well-invested asset base and a robust financial position, the board is confident in both the prospects for the remainder of the current financial year and the continued long-term success and development of the business."

Analyst Darren Shirley at Shore Capital said: "Outperformance of the UK grocery market has been a feature of Cranswick for some time, and we are pleased that such outperformance has continued through Q3 2018, with total and like-for-like sales both 'ahead of the prior year' and also 'slightly ahead of the board’s expectations.

"We estimate both total and like-for-like sales increased at a double digit rate."

Cranswick’s next scheduled comment on trading will be at the preliminary results announcement on May 22.