Meat processor Cranswick saw total revenue in its first quarter to 27 June surge up 24.8% (19.2% LFL), driven by the shift towards greater in-home consumption of meals during the pandemic.
The group stated that “exceptionally robust” retail demand and increased poultry sales from a new production facility had more than offset lower foodservice revenue.
Cranswick said this positive performance had continued during its second quarter, although it expects retail demand to normalise in the rest of the year as more people start dining out.
The group stated that the outlook for the year ending March 2021 was seen exceeding expectations, with it remaining in a robust financial position.
“Whilst we remain cautious about the longer-term economic impact of COVID-19 and the uncertainty surrounding the ongoing Brexit negotiations, we are well-positioned to address these challenges,” said Chief Executive Officer Adam Couch.
NAM Implications:
- Key will be the degree of ‘permanence’ to these shifts to home cooking…
- …but more especially, away from foodservice.
- Realistic NAMs have to be budgeting for a 50% drop in foodservice…at least.
