In the UK stock market, some companies simply manage to perform well, year after year.

To take Cranswick (LSE:CWK), for example. I first noticed the company around 2010. Since then, the stock has performed amazingly. It’s up just over 20% this year alone.

The company produces top quality, fresh and nutritious food products for huge supermarkets, grocery stores and the takeaway sector. In addition, there is “relevant” export activities and animal food business.

Most of its products are made from pork and poultry, and Cranswick owns much of its own supply chain, from pig farms to final product production.

Progress over the years

We have been steadily rising in the 14 years I have been watching. But the good news keeps coming and today (29th July) Cranswick has published another positive trading update. This time it covers the first quarter to 29th June 2024.

The turnover was forceful thanks to “reliable” demand across the company’s key food categories in the UK. Revenue increased by 6.7% year-on-year and 6.4% like-for-like, driven by “strong” volume enhance.

Export sales were significantly higher, but offset by lower prices in Asia and the EU. However, executives believe there are early signs that prices in the Far East are starting to stabilise.

One of the things I like about Cranswick is the way it makes additional acquisitions to maintain its growth momentum. It does this primarily by reinvesting cash flow and earnings, as its balance sheet looks forceful with moderate net debt.

For example, the company acquired Grove Pet Foods in 2022 and has since partnered with Pets supply dehydrated dog ​​food under the Wainwrights and Step Up brands. In an update today, the company said revenue was “strongly” at the forefront in this division.

This year the company acquired an East Anglian pig supplier, expanding the company’s pig herd. Looking to the future, CEO Adam Couch said the company expects to continue to invest in its farming operations to ensure “supply chain security and value optimization”.

Positive attitude

Meanwhile, executives believe demand for Cranswick products is likely to remain forceful for the rest of the year.

City analysts are predicting normalized profits will rise by just under 11% in the current fiscal year to March 2025 and about 5% the following year.

With the share price at around 4685p, the projected earnings multiple is just under a full 18 for next year. So this growth story is well-known in the stock market.

Today’s valuation is higher than the modest estimate I first came across in 2010. So there is some risk to shareholders in this situation.

If Cranswick misses its estimates, the stock price could fall. It’s happened before, and long-term performance has its tender points. So it wasn’t always straight in this case.

However, considering all the factors and risks, I believe Cranswick shares are worth considering for the long term.