Cranswick has scored a £30m contract to supply pork to Asda as well as picking up a new pork deal with Marks & Spencer.
Cranswick picked up both contracts from Vion, which is in the process of selling of its UK businesses.
In light of the Asda deal, Cranswick has invested in an additional site in Hull, which is expected to create between 100 and 120 jobs initially.
The Asda deal is believed to be worth about £30m. Cranswick declined to comment on the value of its new M&S contract, which it secured in November.
In a trading update issued today, the company said business had been strong during the three months from 1 October to 30 January, with turnover up by 7% year-on-year. CEO Adam Couch said bacon and sausages had done especially well during the period, driven by growing consumer interest in premium products, such as air-dried bacon. Gammon joints had also proved “extremely popular” during the quarter, Couch added.
Cranswick also reported it had recently been awarded two export licences for pork products to China and was in the process of opening up the Australian export market. It added it had shipped record volumes of so-called fifth-quarter products, such as offal, to the Far East during the quarter.
The company also emphasised its financial position remained strong despite an increase in its net debt from £32 million to £48 million during the quarter, and said its net debt was now significantly lower than the £59 million it reported this time last year. “The group is in a strong financial position, with committed, unsecured facilities of £100 million which provide generous headroom going forward,” it added.
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