Cranswick reports higher profits as pork demand grows
UK-based meat producer has surpassed earnings forecast; the company has also resumed pork exports to China
UK – Cranswick, a British meat processing company, has posted annual pre-tax earnings ahead of market expectations, driven by increased sales of pork and poultry alongside growth in its pet food division.
The company, which has been in operation for over five decades, expanded its footprint over the past year by acquiring pig genetics firm JSR Genetics and sausage maker Blakemans.
Shares in Cranswick jumped more than 5% on Tuesday, reaching an all-time high following the results announcement.
This came shortly after the firm faced scrutiny over animal welfare practices, which led to the temporary suspension of pork supplies from its Lincolnshire farm to major UK retailers including Tesco.
Cranswick supplies a range of pork products—such as sausages and bacon—to supermarkets across the UK and maintains export links to markets such as China.
Exports to China were revived in December when the company’s Norfolk processing site regained its export licence, nearly four years after a COVID-19 outbreak halted shipments.
As a result of this reinstatement, the company recorded a 10.2% increase in revenue from fresh pork exports during the financial year that ended on March 29.
During the same period, Cranswick reported an adjusted pre-tax profit of US$264.8 million (approximately £197.9 million), exceeding the US$257 million (about £192 million) analysts had anticipated.
This profit boost was partly attributed to a 48% rise in pet product revenues, largely due to a supply partnership with British pet goods retailer Pets At Home.
Dividend Increase and Steady Start to New Fiscal Year
Cranswick has proposed increasing its final dividend by nearly 13%, setting it at 76 pence per share, which equals approximately US$0.99.
Despite recent challenges, the company stated that performance at the start of the current financial year has matched its internal forecasts.
Analysts at Jefferies commented on the company’s ability to invest capital efficiently, although they issued this note before the animal welfare concerns came to light.
Cranswick continues to operate across the entire pig farming supply chain and remains a major supplier to both domestic and international markets.
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