Cranswick sees FY at upper end of expectations after strong H1

27th Sep 2024 07:11

(Sharecast News) - Shares in Cranswick jumped on Friday as the food producer said it expected annual results to be at the upper end of expectations after first-half trading came in ahead of the previous year.

The company said it was still cautious about "current market and wider economic and geopolitical conditions" but noted that trading since the end of the first quarter "has been stronger than previously expected, underpinned by continued robust volume growth in our core UK food business (and) a positive ongoing contribution from our expanding pig farming operations".

"Consequently, we now expect our first half performance to be ahead of the same period last year." the company said in a trading statement on the 26 weeks to September.

"Investment in our asset base continues at pace with the new houmous facility in Worsley, Manchester successfully commissioned during the period."

Market expectations for adjusted pre-tax profit at September 27 2024 ranged between £179.2m - £191.7m, compared with £158m last year.

"The UK still has a big appetite for meat despite growing popularity for plant-based food, judging by Cranswick's trading update," said AJ Bell investment director Russ Mould.

"Cranswick supplies all the major supermarkets and many hotel, pub and food service outlets with pork, chicken and more. It's also got a big export business, particularly in far eastern markets.

"It will be aware of shifting consumer preferences and has some diversification built into its business. A pet food arm and a growing houmous operation, including a new facility in Manchester, offer some comfort if more people start to cut down on meat. However, bangers and pork chops are really the company's bread and butter and it's hard to see these disappearing from shopping baskets any time soon."

Reporting by Frank Prenesti for Sharecast.com