By Ankita Bora and Yadarisa Shabong
(Reuters) -British meat producer Cranswick posted annual pretax profit ahead of market forecasts on Tuesday, benefiting from strong demand for pork and poultry as well as its expansion into pet foods.
The over 50-year-old firm expanded pig farming and milling operations this past year through acquisition of UK pig genetics company JSR Genetics and sausage manufacturer Blakemans.
Shares in the company spiked to a record high on Tuesday and was last up more than 5%.
“We see few businesses that have the capability, runway and track record to deploy capital so effectively,” analysts at Jefferies said in a note.
Cranswick’s shares last week had tumbled on news that it suspended pork supplies from its Lincolnshire farm to UK supermarkets such as Tesco after concerns over animal welfare.
Cranswick operates in all areas of pig production and supplies fresh pork, sausages and bacon, among other things, to supermarkets across Britain and also exports to China.
In early December, the company’s China export licence was reinstated for its Norfolk primary processing facility, four years after it suspended exports due to a COVID-19 outbreak.
In the year ended March 29, the company saw fresh pork export revenue rise 10.2% following resumption of its Norfolk site exports to China.
Cranswick reported adjusted profit before tax of 197.9 million pounds ($264.8 million) for the year ended March 29, above analysts’ expectations of about 192 million pounds, according to data compiled by LSEG.
That was partly helped by a nearly 48% jump in pet products revenue, mainly due to its supply agreement with British retailer Pets At Home.
The company proposed to raise its final dividend by nearly 13% to 76 pence per share.
“The start to the current financial year has been in line with the board’s expectations,” Cranswick said in a statement.
($1 = 0.7474 pounds)
(Reporting by Ankita Bora and Yadarisa Shabong in Bengaluru; Editing by Varun H K and David Evans)
