(Reuters) -British meat producer Cranswick reported higher first-quarter revenue on Monday as strong demand for its premium ranges offset lower meat prices in Asia and Europe.
Cranswick, which produces fresh pork, bacon, gourmet sausages, poultry items and continental foods and supplies to supermarkets, said its revenue growth was led by strong volumes.
“Export sales volumes were strongly ahead but were offset by reduced pricing in the Far East and European Union albeit there are early signs that Far East prices are starting to firm,” the company said.
British food producers have been benefiting from a revival in consumer spending and easing costs, after a long spell of staggering demand and supply-chain constraints amid inflationary pressures.
“The core drivers within Cranswick and its profitability are UK food activities and increasingly farming and agricultural activities,” said Shore Capital analyst Darren Shirley.
Weak pricing in China and Europe will not be a significant headwind for the meat producer, which has key customers in the UK, Shirley added.
The 50-year-old firm, which traces its roots to a pig farming collective in Yorkshire, has been heavily investing in expanding production capacity and product lines to diversify revenue sources.
“We have added to our pig herd during the quarter and, going forward, we expect to make further investment in our agricultural operations to ensure supply chain security and value optimisation,” said CEO Adam Couch in a statement.
Shares of the FTSE 250 firm were up 1.9% at 4,625 pence on Monday, while they have risen about 22% so far this year.
Cranswick also said its quarterly revenue was 6.7% ahead of the year-earlier period, while maintaining its outlook for the current financial year.
(Reporting by Yamini Kalia in Bengaluru; Editing by Sherry Jacob-Phillips and Sharon Singleton)
