Lockdown dinners at home lead to 25pc sales increase and improved outlook for Cranswick
BRITONS’ appetite for bacon during lockdown helped meat producer Cranswick boost sales by 25pc in its first quarter, and the firm has raised its outlook for the year.
Revenue for the 13 weeks to June 27 was 24.8pc ahead of same period last year, the company revealed, while likefor-like sales jumped 19.2pc.
Cranswick said: “As a result of the current shift towards greater in-home consumption, retail demand has been exceptionally robust.
“This, together with increased poultry sales ... has all comfortably offset lower food service revenue. This positive performance has, to date, continued during the second quarter.”
Analysts at HSBC expect the trend to have “normalised somewhat” in August as the Government’s “Eat Out to Help Out” scheme takes effect. Cranswick said retail volumes should begin to normalise through the remainder of the year as consumers gradually return to eating out.
But it still expects its outlook to be ahead of previous expectations for the year.
Chief executive Adam Couch said: “Whilst we remain cautious about the longer-term impact of Covid-19 and the uncertainty surrounding the ongoing Brexit negotiations, we are well positioned to address these challenges.”
The FTSE 250 company said all its sites remained fully operational, with “enhanced safety measures swiftly introduced in March”.
In May, Cranswick revealed that three of its workers who contracted coronavirus had died.
Shares closed 6.6pc higher to £40.76.
Cranswick has benefited from Britons eating more pork products at home