(Reuters) -British meat producer Cranswick (LON:CWK) forecast annual profit ahead of its previous expectation on Thursday, helped by stronger-than-expected trading in the Christmas quarter.
Trading updates from UK retailers and industry data have shown that shoppers prioritised spending on food rather than on discretionary general merchandise during Christmas, highlighting continued tight economic conditions in Britain.
Cranswick, which produces fresh pork, bacon, gourmet sausages, poultry items and continental foods, said its third-quarter revenue growth was underpinned by higher volumes across all four core UK food categories, as customers grabbed its affordable products in the pork and poultry segments.
The company has been investing heavily in expanding production capacity, automating processes and delving into new product lines to diversify its revenue sources. Last year, it entered the pet foods business.
The UK-based meat firm in November forecast profit for the year ending March 30 at the upper end of a company-compiled market estimate range of 153.2 million pounds to 160.8 million pounds ($194.5 million-$204.1 million).
Analysts on average currently expect an annual profit of 162.2 million pounds, according to LSEG data.
Earlier this month, retailers Marks & Spencer and Tesco (LON:TSCO) reported strong Christmas performance, partly buoyed by growth in the food segment.
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