Investing.com — Cranswick (LON:) in a statement on Tuesday said it expects its annual profit to align with market expectations following a robust performance during the festive trading period.
Shares of Cranswick were up 2.4% at 05:46 ET (10:46 GMT).
The company, which specializes in pork and poultry products, reported strong revenue growth for the 13 weeks ending December 28, 2024.
This growth was driven by increased volumes across its core food business, underscoring the appeal of its affordable and versatile product offerings.
The holiday season saw record demand for Cranswick’s premium, value-added products, contributing to the UK-based food producer’s overall performance.
Cranswick emphasized the importance of its expanding pig farming and milling operations, which have improved capacity and efficiency.
This growth trajectory will be further strengthened by the acquisition of JSR Genetics, a leading UK-based pig genetics firm.
The deal, announced alongside the trading update, involves Cranswick purchasing the entire issued share capital of JSR Genetics Limited from JSR Farms Limited.
JSR Genetics, an East Yorkshire-based pig genetics company renowned for its innovative and sustainable breeding programs, has been a long-term supplier to Cranswick. This acquisition is expected to enhance Cranswick’s pig farming operations.
In another boost for the business, Cranswick’s Norfolk primary processing facility regained its China export licence in early December after a four-year suspension.
Shipments to China resumed in January, marking an important milestone for the company in accessing a key export market.
Jefferies in a note said that Cranswick delivered another strong quarter, although analyst estimates remained unchanged.
Despite this, they flagged several positive developments, especially the resumption of China exports and the company’s accelerated capital expenditure program.
They said that Cranswick’s track record of strong returns as a key factor supporting this increased investment.
Cranswick reaffirmed its commitment to capital investment, which is aimed at automating processes, expanding production capacity, and improving operational efficiency.
The company anticipates exceeding its previous capital expenditure guidance for the full year as it accelerates investments to drive stronger returns.
Cranswick maintains a positive financial outlook for the year ending March 29, notwithstanding the prevailing market uncertainties.
“We have confidence in Cranswick’s long-term growth opportunities thanks to elevated levels of capex, our confidence in capital allocation post site visits and its endeavour into Pet Food. However, we believe these are already reflected in its current valuation,” said analysts at RBC Capital Markets in a note.
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