August 1, 2024

 

UK meat producer Cranswick reports Q1 revenue growth despite lower meat prices in Asia and Europe

UK meat producer Cranswick announced an increase in first-quarter revenue, driven by strong demand for its premium products, which offset lower meat prices in Asia and Europe, Farm Journal's Pork reported.

 

Cranswick, known for producing fresh pork, bacon, gourmet sausages, poultry items, and continental foods for supermarkets, attributed its revenue growth to strong sales volumes.

 

"Export sales volumes were significantly ahead, although this was offset by reduced pricing in the Far East and European Union. However, there are early signs that prices in the Far East are starting to firm," the company stated.

 

British food producers have been benefiting from a revival in consumer spending and easing costs, following a period of significant demand and supply-chain challenges amid inflationary pressures.

 

"The core drivers within Cranswick and its profitability are UK food activities and increasingly farming and agricultural activities," said Darren Shirley, an analyst at Shore Capital.

 

Shirley added that weak pricing in China and Europe will not pose a significant challenge for Cranswick, as the company has key customers in the UK.

 

"We have added to our swine herd during the quarter and, going forward, we expect to make further investments in our agricultural operations to ensure supply chain security and value optimisation," said CEO Adam Couch in a statement.

 

Cranswick also reported that its quarterly revenue was 6.7% higher than the same period last year, while maintaining its outlook for the current financial year.

 

-      Farm Journal's Pork