October 1, 2024

 

Cranswick forecasts strong year-end profits following swine farming investments

UK food producer Cranswick is anticipating profits at the "upper end" of market expectations after its investments in swine farming operations contributed positively to the company's performance, City AM reported.

 

In a half-year trading update, the company, headquartered in Kingston upon Hull, attributed its strong results to its expansion into swine farming. Cranswick now expects its full-year profits to be near the higher range of market forecasts, which are estimated between GBP 179.2 million (US$240 million) and GBP 191.7 million (US$256 million).

 

"The board remains confident that continued focus on the strengths of the company, which include its long-standing customer relationships, breadth and quality of products, and industry-leading asset infrastructure, will support the further successful development of the group over the longer term," Cranswick said in a statement.

 

Earlier this year, Cranswick experienced a surge in profits, which the company attributed to its acquisitions of Elsham Linc and Froch Foods. These takeovers have bolstered the company's growth and profitability.

 

For the first half of the year, Cranswick reported a revenue increase of 11.9% to GBP 2.6 billion (US$3.4 billion), with earnings per share rising by 15% to 242.8p.

 

The company's sales growth, despite challenges posed by inflation and other macroeconomic pressures, was driven by a 4.5% increase in UK food volumes, which gained momentum during the second half of the year.

 

The positive results were further supported by the acquisitions of Elsham Linc and Froch Foods, which together amounted to GBP 46.1 million (US$61.7 million), strengthening Cranswick's market position.

 

-      City AM