Cranswick interim profits rise as in-home consumption grows

Food producer Cranswick posted a jump in interim profit and revenue on Tuesday thanks to "exceptionally robust" demand across all of its categories as in-home consumption grew during the pandemic.

In the 26 weeks to 26 September, adjusted pre-tax profit rose 30.8% to £60.7m on revenue of £931.6m, up 21% on the same period a year ago. Adjusted earnings per share grew 29.6% to 92.8p and the interim dividend was lifted 12.0% to 18.7p.

The company said demand was underpinned by a shift towards in-home consumption, brought about by Covid-19 restrictions and lockdowns. Cranswick said all four product categories delivered strong revenue growth, reflecting the annualisation of new contract wins in FY20, the new Eye poultry facility operating at full capacity throughout the period and further export revenue growth.

The cooked meats category performed "exceptionally well" during the half, with strong retail revenue growth delivered through changing consumer habits as a result of the pandemic as less food was consumed out of the home.

"Retail demand was exceptionally strong, particularly during the early stages of the first national lockdown, comfortably offsetting lower food service volumes across the group's product ranges," Cranswick said.

Chief executive officer Adam Couch said: "We have made a strong start to the year. Although we remain cautious about the longer-term economic impact of Covid-19 and the continued uncertainty surrounding the ongoing Brexit negotiations, we are well positioned to address these challenges.

"Our outlook for the current year is unchanged and we have a solid platform from which to continue Cranswick's successful long-term development."