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Cranswick records ‘strong’ Q1 growth as pig herd continues to build

Alistair DriverBy Alistair DriverJuly 30, 20243 Mins Read
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Cranswick recorded ‘strong’ growth in the first quarter of 2024 on the back of continuing robust demand in its core UK food categories.

The group’s reported revenue in the quarter was 6.7% ahead of the same period last year (6.4% like for like), driven by strong volume growth which the integrated pig and poultry processor said reflected ‘business wins and a return to promotional activity across our customer base’.

The quarter saw further expansion of its pig farming operations, with completion the acquisition of a long-standing existing supplier of RSPCA Assured outdoor bred pigs, based in East Anglia. These farms will be integrated into Cranswick’s Wayland Farms operation, further increasing its self-sufficiency in premium British pigs, which was around 50% after the acquisitions in 2023, including large indoor business, Elsham Linc.

“Integration of our agricultural operations continues to deliver positive momentum, securing supply for customers’ pork requirements whilst enabling optimisation of cost of production and productivity, market leading farm infrastructure and animal welfare standards,” the company said in its latest trading statement.

Premium product ranges performed particularly well, while easing input costs have been reflected in selling prices. Export sales volumes were strongly ahead of 2023 but were offset by reduced pricing in the Far East and EU, although there are now early signs that Far East prices are starting to firm.

Investment

The Hull-based business continues to invest across its asset base to drive operating efficiencies and to add capacity in readiness for new business coming on stream.

This includes delivery of three ongoing ‘earnings enhancing capital projects’ that are progressing to plan: the multi-phased expansion project at the Hull pork primary processing site; fit out of the new houmous facility at Worsley, Manchester; and expansion of value-added poultry across both Hull sites.

Strong start

Adam Couch, CEO of Cranswick, said: “We have made a strong start to the year, delivering another quarter of strong revenue growth, whilst continuing to provide excellent service levels ensuring full availability of our products for our customers and the UK consumer.

“Our continued capital investment programme, including integration of agricultural supply chains, will further enhance operating efficiency and support UK food security as we continue to deliver on our long-term growth strategy.

“Our poultry business is growing strongly and the substantial investment we are making in our two value-added facilities in Hull will create the headroom for further expansion in this category.

“Looking ahead we continue to lay the foundations which will allow Cranswick to prosper. We have added to our pig herd during the quarter and, going forward, we expect to make further investment in our agricultural operations to ensure supply chain security and value optimisation. We expect demand for our products to remain robust through the remainder of this year and our outlook for the current year remains unchanged.”

The Board’s expectations for the current financial year ending 29 March 2025 are unchanged.

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Alistair Driver

Editor Pig World, group editor Agronomist and Arable Farmer and Farm Contractor. National Pig Association webmaster. Former political editor at Farmers Guardian. Occasional media pundit. Brought up on a Leicestershire farm. Works from a shed in his Oxfordshire garden.

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