August 18, 2020
UK meat processor Cranswick reports 25% higher revenue from increased retail demand
UK-based meat processor Cranswick said increased retail demand due to COVID-19 lockdowns pushed its Q1 revenue 25% up but that demand is expected to normalise as consumers steadily resume dining out, Reuters reported.
Cranswick said its yearly outlook ending March 2021 is projected to exceed estimations, but with a capex lower than last year. The company's shares are 7% higher with 20% gains total for the year.
The company is a major supplier of pork and chicken to UK grocery retailer and owns several farms.
HBSC analysts said British consumers are expected to make the most of the government's discount programme to eat out, normalising retail demand in the future even though Cranswick said it has sustained its positive revenue trend into Q2.
Cranswick's exports account for 11% of its 2019 revenue, and the company has profited from high prices and boosted demand from China.
Adam Couch, Cranswick chief executive said the company is in a good position to tackle challenges such as the ongoing uncertainty around Brexit negotiations and the economic impact of COVID-19.
Cranswick said it had implemented COVID-19 safety precautions since March to maintain full operations of its plants. These include social distancing for its worke and supplying workers with personal protective equipment. Facilities have ramped up cleaning and hygiene standards.
The company, which produces sausages, bacon, fresh pork and chicken said retail demand has countered COVID-19's impact on its food-to-go channel.