- Analysts expect FY profit between $239.77 mln and $256.49 mln
- Sees trading in H1 ahead of last year
- Shares up nearly 6% at 49.95 pounds
Sept 27 (Reuters) - British meat producer Cranswick forecast its annual profit towards the upper end of the market view on Friday, encouraged by strong growth in its UK food business and pig-farming operations, sending its shares to a record high.
The over 50-year-old firm, which traces its roots to a pig-farming collective in Yorkshire, has been heavily investing in expanding production capacity and product lines to diversify revenue sources as seen with the recent commissioning of its new houmous facility in Worsley, Manchester.
Shares of Cranswick, which produces fresh pork, bacon, gourmet sausages, poultry items and continental foods and supplies to supermarkets, were up nearly 6% at 4995 pence by 0800 GMT, having risen about 31% since the start of the year.
UK's consumer sentiment is seeing a gradual return to premium products as rising cost pressure ease and consumer budgets improve amid a cost-of-living squeeze, analysts at Peel Hunt said.
"We should not be too surprised at the upgrade," said Jefferies analyst Andrew Wade, adding that they expect first quarter's robust volume growth to continue through the first half of the year.
The company said it expects trading in the first half of the year to be ahead from a year ago after performance since the end of its first quarter was stronger than expected.
Cranswick is expected to post adjusted pretax profit between 179.2 million pounds and 191.7 million pounds ($239.8 and $256.5 million) for the financial year ending March 29, 2025, according to a company compiled consensus.
($1 = 0.7474 pounds)
Reporting by Yamini Kalia in Bengaluru; Editing by Rashmi Aich and David Evans
Source: Reuters