Cranswick FY profits rise as investment bears fruit

21st May 2024 09:20

(Sharecast News) - Food producer Cranswick posted a jump in full-year profit and revenue on Tuesday as its investment programme bears fruit.

In the year 53 weeks to 30 March, adjusted pre-tax profit rose 26.1% to £176.6m on revenue of £2.6bn, up 11.9% on the previous year.

On a comparable 52-week basis, revenue grew 9.8%. Cranswick put this down to effective inflation recovery and 4.5% volume growth in UK food, with growth accelerating through the second half.

The company highlighted a more stable environment for farmers, leading to the recovery of pig prices, which it said contributed to the "robust" results.

"We have increased our self-sufficiency enabling us to maintain our pig volumes against a double-digit percentage reduction in the national herd," it said.

Cranswick lifted its full-year dividend by 13.4% to 90p a share, noting that this was the 34th year of unbroken dividend growth.

Chief executive Adam Couch said: "Our successful performance owes a great deal to the substantial investment we have put into enhancing our farming infrastructure and expanding our vertical integration. We have increased the size, scale and quality of our pig herds through ongoing organic growth and the acquisitions of new indoor and premium outdoor pigs.

"Over the last 12 months we have strengthened our asset base, substantially expanded our farming operations, enhanced market positions and developed new customer relationships. We continue to make good progress against each of our strategic objectives and we are well placed to continue our successful development in the current financial year and over the longer term."