Meat products specialist Cranswick has expressed strong confidence in achieving top-tier profits this financial year, following what it describes as a record-breaking Christmas trading period. The Humber-based firm anticipates full-year pre-tax profits will reach the upper end of estimates, potentially hitting £216 million, driven by robust sales across its diverse product ranges.
Festive Performance Exceeds Expectations
A third-quarter trading update released to investors on the London Stock Exchange revealed that sales during the recent festive season even surpassed the strong performance recorded in 2024. The company highlighted its premium, added-value ranges, including popular festive grazing platters, as particularly strong performers that contributed significantly to this success.
Revenue Growth Across Multiple Categories
Cranswick reported substantial revenue increases across several key product categories. Fresh pork, convenience items, and gourmet festive products all demonstrated strong sales momentum. Poultry revenue saw a significant year-on-year increase, attributed to stronger fresh poultry pricing resulting from welfare-minded lower density production methods and the establishment of a premium retail business at the company's added-value, cooked and prepared poultry facilities.
Pet products revenue also grew strongly, bolstered by the expansion of Cranswick's supply agreement with national retail chain Pets at Home. This diversification across product categories has provided the company with multiple revenue streams contributing to its overall growth trajectory.
Strategic Acquisitions Driving Momentum
The company revealed that recent strategic acquisitions have performed better than initially expected, continuing to drive positive momentum. These include:
- Staffordshire-based sausage manufacturer Blakemans
- East Yorkshire pig breeding business JSR Genetics
- Fridaythorpe feed mill operations
These acquisitions have strengthened Cranswick's vertical integration and expanded its capabilities across the meat production supply chain.
Investment in Future Growth
Cranswick has made significant progress on its pipeline of major projects designed to enhance capacity and capabilities at key production facilities. The company expects full-year capital expenditure to reach between £160 million and £170 million, representing substantial investment in future growth infrastructure.
As a result of this spending and the usual seasonal uplift in working capital requirements, net debt increased during the third quarter. However, company leadership expects this to reduce by year-end, pointing to £360 million of unsecured financing that provides what they describe as "good headroom" to fund future growth and investment initiatives.
Leadership Perspective on Success
Adam Couch, Chief Executive Officer of Cranswick, commented on the company's performance: "We have delivered another strong quarter of growth underpinned by revenue growth across all product categories and a record Christmas trading period. This excellent performance is the result of our unrelenting focus on delivering outstanding service levels, sector-leading innovation and unrivalled product quality across our festive product range for our customers."
Couch added: "I would like to thank all of our colleagues for their ongoing support and commitment. The unrivalled capability of our people across the business is key to our continued successful progress and development."
The company's positive outlook reflects both its strong operational performance and strategic positioning within the meat production sector, with diversified product offerings and integrated supply chain operations contributing to its competitive advantage in the marketplace.
