Cranswick, the UK meat processor, has reported a jump in third-quarter sales but warned that rising input costs in pig meat, beef and poultry could weigh on the business.
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The company said underlying revenue rose 18% to GBP158m (US$314m) during the three months to 31 December.
Cranswick’s food division, which accounts for the bulk of the company’s business, saw turnover climb 17% thanks, it said, to “double-digit growth” across most categories.
Nevertheless, Cranswick warned that price deflation and rising costs could put pressure on the business.
“While Cranswick is benefiting from higher than planned volume gains, it is currently proving difficult to pass on the full impact of rising costs. Discussions on this are ongoing with customers,” Cranswick said.
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By GlobalData“While it is disappointing to be experiencing these pressures, which can be expected to moderate the company’s growth rate, Cranswick is in a very strong position to capitalise once equilibrium returns to input prices and selling prices,” the company added. “Our market positions are strong, our plants are well invested, the business is highly cash generative and we have excellent customer relationships.”
