Food producer Cranswick reports strong start to the year as demand remains resilient

In a statement, Cranswick said: “UK revenue across all four food product categories was ahead year-on-year, underpinned by positive volume momentum in our fresh pork, convenience and gourmet products categories.

"Poultry volumes were modestly below the equivalent period last year with lower cooked poultry volumes partly offset by strong growth in breaded poultry.

“Export sales were lower with Far East volumes remaining subdued reflecting the anticipated seasonal slowdown in demand in China.”

Cost inflation continues to be proactively managed and mitigated through tight cost control and ongoing recovery, albeit the rate of inflation is now starting to slow, Cranswick said.

The statement added: “Accelerated investment in automation projects and a relentless focus on delivering cost saving initiatives, allied to the affordability and value for money of our core pork and poultry categories, continue to drive our competitive advantage.

“The UK pig herd has contracted significantly over recent months in response to the rapid escalation in feed costs following the outbreak of war in Ukraine in 2022. Therefore, many independent producers have chosen to cut back or cease production entirely in response to the unprecedented inflationary pressures. This sustained tightening of supply resulted in the average UK pig price across the quarter increasing by 28 per cent compared to the same period last year. Our self-sufficiency is now approaching 50 per cent as we continue to invest in and expand our pig herd to ensure we have the required quantity and quality of pigs to service our customers’ requirements.”

Cranswick said its pet products business continues to make strategic progress with the £10m capital investment programme progressing to plan.

The statement added: “The group has made a strong start to the year with momentum continuing into the second quarter with demand remaining resilient in our core UK categories as the UK consumer continues to recognise the quality, value and versatility of our pork and poultry product ranges.”

Adam Couch, the chief executive of Cranswick, commented: “We have made a strong start to the year, delivering another quarter of growth during which we have again supported our customers by providing excellent service levels to ensure full availability of our products. None of this would have been possible without the incredible support of our colleagues across the business and I thank them for their continued commitment and dedication.

“Our continued positive progress reflects the substantial ongoing investment in our asset base and the quality and capability of our colleagues across the business.”