May 26, 2022

UK meat producer Cranswick stands by 2023 outlook and reports higher annual profit

UK meat producer Cranswick stands by 2023 outlook and announced a higher annual profit as it continues to cut costs due to inflation, labour shortages, and supply chain challenges, Reuters reported.

Cranswick said the price of grains, which account for 60% to 70% of the cost of raising each animal, increased by more than 50% when the Ukraine crisis began. The company has its roots in a Yorkshire swine farming cooperative.

The problem has worsened the British meat industry's troubles, with UK consumers cutting back on meat consumption in the face of rising inflation, even as the sector continues to struggle with a lack of butchers as a result of the Brexit-driven labour crisis.

Cranswick urged the UK government to do more to help the swine industry, which it described as being under "severe and unsustainable strain" as a result of the issues.

Fresh pork, bacon, gourmet sausages, poultry, and continental meals are all produced by the firm. Cranswick mostly serves the British market, while it does export certain items, and retail chains account for the majority of its sales.

Tesco, the UK's largest grocery chain, announced last week that it has allocated an additional 6.6 million pounds to help the country's ailing pig business.

Adam Couch, Cranswick's chief executive officer of Cranswick, said that trading in the new financial year had met the board's objectives.

He said the company's outlook for the present year remains unchanged, apart from the adverse operational conditions they continue to face.

For the 52 weeks ending March 26, adjusted pre-tax profit was GBP 136.9 million (~US$172.2 million; GBP 1 = US$1.26). Data from Refinitiv Eikon showed analysts expected a profit of GBP 136.3 million (~US$171.7 million) on average.

-      Reuters