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Cranswick beefs up margins targets as it partners with Sainsbury on £61m project

2025-10-11 22:45:08 By

Cranswick is a FTSE 250 food manufacturer based in Hull

Meat producer Cranswick has upgraded profit targets following a strong fourth quarter of demand for its pork and poultry products.

The Hessle-based supplier to major supermarkets has beefed up medium term operating margin ambitions from 6% to about 7.5% as it said it was on target to meet adjusted pre-tax profit expectations of between £190m-£195.1m.

Cranswick, which is celebrating its 50th year, gave the update ahead of preliminary results for the year to March 29, and as part of a capital markets day. Simultaneously, key customer Sainsbury's announced a £61m partnership with the firm that will see Cranswick supply all British pork, sausages, premium bacon and gammon, and cooked meats to its shelves.

The 10-year agreement also includes measures to raise welfare standards of the by Sainsbury's British pork range. It includes direct investment in flexible farrowing accommodation, where pigs are housing during birthing. AI technology will also be used for 24/7 monitoring of the animals.

It is estimated Sainsbury’s will invest £50m to implement the measures by 2030, with an additional £11m coming from Cranswick to help build the new sheds and housing for the pigs. Jim Brisby, Cranswick's chief commercial officer, said the partnership will provide a secure supply chain "fit for the future" and support a fair return to more than 170 farmers. He also added the contract would give the firm confidence to invest in its farms, processing factories and people.

On the upgraded trading ambition, Adam Couch, CEO of Cranswick, said: "We are also announcing today more ambitious medium-term financial targets, reflecting the significant strategic progress we have made since first introducing these measures.

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