Cranswick increases profits as Asian exports soar
26th Nov 2019 / By Alistair Driver
Cranswick has reported a 3.6% rise in pre-tax profits to £47.6 million in the six months ended September 30, 2019.
Turnover increased by 7.1% to £770m, as the company's performance was significantly boosted by increased export demand – Far East export revenues were almost double year earlier levels on the back of Asia's ASF crisis, with total export revenue up 65%.
Adam Couch, Cranswick’s chief executive, said the company had invested record first-half capital expenditure of £56m to provide the platform for future growth.
He said: “We have made a positive start to the year with reported revenue growth of 7.1% underpinned by a very strong performance in our Far East export markets. The UK market remains highly competitive.
“We have again invested at record levels across our asset base to position the business for future growth. The Katsouris Brothers business, acquired in July, has been integrated successfully and is performing in line with our expectations.”
“I remain confident that continued focus on the strengths of our business, which include long-standing customer relationships, breadth, quality and relevance of our products, robust financial position and industry leading infrastructure, will support the further successful development of Cranswick over the near and longer term.”
Steve Miley, a senior market analyst at www.asktraders.com, said: "These were a strong set of results from Cranswick.
"The global outbreak of African swine fever has played into Cranswick’s hand, boosting demand for the UK producer’s produce, particularly in China which ha been hard hit by the outbreak.
"Cranswick shares have already risen 22% so far this year as investors price in increased Chinese demand. However, investors were prepared to push the stock even higher on the back of today’s results."