Profits Rise for Cranswick26 November 2013
UK - British pig meat and food processor Cranswick has reported a 16 per cent rise in pre-tax profits for the first half of the year.
The profits rose from £22.4 million in 2012 to £26.1 million in the six months to the end of September.
The adjusted profits rose by four per cent to £23.2 million.
The company’s revenue for the six month period rose by 15 per cent from £418.6 million to £483.5 million.
Cranswick’s Chairman, Martin Davey, said: “The first half of the year has overall been quite a positive period for the Company.
Continued growth in sales, significant investment in the asset base, most notably the commissioning of the new pastry facility, along with the strategic development of the Company’s pig breeding and rearing activities were all positive features of the six months trading. The increase in sales is especially encouraging.
The pastry business is making progress and the impact of higher pig prices has been partially mitigated by on-going efficiency improvements, sales volume growth, acquisitions and through constructive discussions with customers.
The Board anticipates that the full year performance will be in line with its expectations.
With experienced management at all levels of the Group, a strong range of products, a well invested asset base and a robust financial position, the Board remains confident in the continued long term success and development of the business.”
Market analysts Shore Capital said of the results: “The update from this leading British food manufacturer follows on from its Q2 trading statement (7 October 2013) when the company recorded input price pressure that had squeezed margins a little albeit revenue growth was very strong.
“Indeed, such is the quiet nature of the mainstream supermarket scene in autumn 2013, as reflected in the market data from the likes of Neilsen, we assert that the 15per cent total sales growth (13 per cent underlying sales growth) Cranswick reported in H1 (£483.5m vs. £418.6m in 2012/13A) is an outstanding achievement, reflecting both the attractiveness of pork as a protein at present and Cranswick’s commendable value added capabilities.”
TheMeatSite News Desk