Cranswick pre-tax profits up 12%, sales up 8%
Chief Executive Bernard Hoggarth said it was “extremely pleasing” to be able to deliver such positive figures given the challenging economic climate.
He added: “There are several reasons to continue to be optimistic. Our business operates from what are widely regarded as some of the best-invested production facilities in the UK.
“This coupled with the group's gourmet product ranges, its reputation for quality and capability of offering several tiers through to value ranges, leaves it very well-positioned going forward.”
Fresh pork up 27%, sausages up 8%, bacon up 24%
Fresh pork sales were ahead by 27% boosted by a good barbecue season and the World Cup. Sausage sales were up 8% reflecting heightened promotional activity, while bacon sales were up 24%.
Cooked meats production has been consolidated into three sites from four after the assets of Cranswick's Deeside facility were spun off into a joint venture with Morrisons' subsidiary Farmers Boy (Deeside) in which Cranswick has taken a 49% stake.
“Allowing for this, underlying cooked meat sales were 9% ahead", said the firm. A range of handmade gourmet sausage rolls [Cranswick’s first foray into pastry products] was recently launched with one customer with some varieties now available from almost 600 deli counters.”
Corned beef sales lower
Corned beef sales were lower after some business was taken in-house by an existing customer. However, new olive and antipasti ranges were performing “extremely well” and sandwich sales were up 19%.
Investec Securites analyst Nicola Mallard said Investec had “nudged up our full year revenue forecast by around £5m”.
Shore Capital analyst Clive Black said: “We sense that management retains considerable ambition and foresees plenty of opportunity for the medium-to-long-term expansion."
