Food producer Cranswick makes 'good progress' on scheme to create at least 200 jobs in Hull

Cranswick, has provided an update on trading for the 13 weeks to 26 June 2021.

Revenue in the 13 weeks to 26 June 2021 was 9.6 per cent ahead of the same period last year, with corresponding volumes up 7.7 per cent, reflecting strong retail demand and increased sales from the Eye poultry facility, the group said.

Revenue growth also reflected the gradual but sustained recovery of the food to go and food service channel.

The statement added: "Far East export sales were well ahead of the same quarter last year, reflecting strong market prices. The China export licence at our Norfolk primary processing facility remains suspended; as previously noted, whilst the technical audits were passed at the site in January 2021, we still await final approval.

"The UK pig price increased by 12 per cent during the period; the average price across the quarter to June 2021 was 9 per cent below that in the equivalent period a year earlier.

The statement added: "We continue to invest at pace across our asset base to support future growth and further operating efficiencies. The capacity uplift from 1.1m to 1.4m birds per week at the Eye poultry facility was delivered successfully and, as anticipated, the new £20m cooked bacon facility in Hull started commercial production during the quarter.

"A further £5m will be spent at the facility over the coming months to add additional capacity and capability. Work on the new premium breaded poultry facility in Hull is progressing well, with incremental investment of £5m, which includes a third production line, added to what is now an overall £30m build plan."

The statement added: "We continue to make meaningful progress in delivering our group-wide ‘Second Nature’ sustainability strategy. During the period six more of our sites were awarded the carbon neutral (IPAS 2060) certification.

"Nine of our sites have now gained the accreditation, with all remaining production facilities on track to achieve this status by the end of 2021."

The outlook for the current financial year remains in line with the board’s expectations, the statement added.

The statement added: "The board is confident that continued focus on the strengths of the company, which include its long- standing customer relationships, breadth and quality of products, robust financial position and industry leading asset infrastructure, will support the further successful development of the group during the current year and over the longer term.

Adam Couch, CEO of Cranswick, commented: “We have made a positive start to the year. Our capital investment programme remains firmly on track as we build the platform to deliver our long-term growth strategy and we continue to make meaningful progress in delivering our group-wide 'Second Nature' sustainability strategy.

"We also continue to support our customers by delivering excellent service levels to ensure full availability of our products.

“The professionalism and commitment of our colleagues across the business is the foundation on which our successful performance is based and as always I would like to thank them for their continued dedication and support."

In May, the group revealed that its new £20m premium cooked bacon facility is fully operational and work is underway on a new breaded poultry facility in Hull which will be operational in 2023.

Speaking in May, Mr Couch said the new breaded poultry facility would create 200 jobs at an absolute minimum.

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