Cranswick reported a Salmonella incident earlier this year which cost the company over £3 million.
In a half-year results statement, which covers up to the 24th of September, 2022, the food producer reported an adjusted group operating profit of 1.7 percent lower at £68.4 million ($81.4 million).
This included a charge of $3.7 million due to costs associated with the product recall in May after a type of bacteria was found at our Hull-cooked poultry facility in England.
The lower operating margin during the quarter reflected the short-term lag in recovering inflationary pressures across several cost categories. Good progress is being made in managing and recovering these incremental costs, said Cranswick.
Production has stopped due to a recall.
In May, Cranswick halted production at the Hull plant after finding Salmonella. A routine inspection uncovered the problem in some cooked chicken products.
The company asked customers to remove any chicken they have on hand that is ready to eat.
A number of UK stores, including Marks and Spencer, Tesco, Waitrose, Aldi, and Sainsbury’s issued recalls on products. These companies are not alone. Amazon, coffee shops Costa and Starbucks, and the sandwich store franchise Pret A-Manger all issued a recall as well.
Overall revenue figures for the poultry industry have remained relatively static. Product recalls and factory shutdowns are likely to have affected sales, but as supply has now been restored Cranswick expressed optimism that numbers will soon recover.
Cranswick said it was also keeping a close eye on avian influenza with strict biosecurity protocols enforced across all farms.
The UK’s poultry industry is experiencing severe avian influenza this year. In early November, a nationwide bird housing order was introduced.
Cranswick’s CEO, Adam Couch, said the company has made progress during a challenging operating environment.
We have a commitment to providing a great-tasting meal, quality service, and high-value food at affordable prices. Our unwavering focus on these four things helps drive our competitive advantage while delivering quality food and service to our UK customers.
