Cranswick profits soar by 31% on back of COVID retail demand and soaring exports
24th Nov 2020 / By Alistair Driver
Cranwick, already in a very healthy financial position, has announced a further 31% hike in its profits to nearly £61 million during the first half of the current financial year.
Despite suffering disruption to its plants from COVID-19, the Hull-based processor has benefited from the switch in consumer buying habits caused by COVID-19 during the period, while also enoying continuing strong export growth, particularly to China.
In the 26 weeks to September 26, its revenue grew by £162m to £931.6m, a 21% increase (17% like-for-like). Adjusted profit before tax for the period was up 30.8% on the corresponding period last year to £60.7m.
Like-for-like fresh pork revenue, which accounts for 31% of total revenue, increased by 6.9% reflecting strong retail and export demand, partially offset by lower wholesale volumes and disruption to China exports caused by a COVID-19 outbreak at its Ballymena plant.
Already strong Far East export sales were 24.8% ahead of the same period last year, with China continuing to drive export demand, as it fills the gap left by its African swine fever outbreak.
You can read more on Cranswick's results HERE
NPA chief executive Zoe Davies said: "It's good to see Cranswick continuing to post healthy profits, particularly as processors will need to be strong going into next year, which could be challenging.
"There is no doubt it has helped keep the UK pig price higher than it might otherwise have been over these past few months and, hopefully, it will continue to do so, COVID challenges notwithstanding."
Zoe also thanked Cranswick for the efforts it has made to keep production moving as much as possible at plants affected by COVID-19, something she said had helped the industry during this difficult period.