FDBusiness.com

Cranswick, one of the leading UK suppliers of pork products, has reported a 23% drop in operating profit to £19.0 million on revenue up 3% to £393.9 million for the six months ended 30 September 2011, compared to the corresponding period in the previous year. Operating margin at 4.8% of sales was also below the 6.4% achieved in the same period last year and for the last financial year as a whole. Operating margins were impacted by a sharp increase in input costs during the first quarter of the financial year. Operating profit included £0.5 million in respect of the group’s 49% share of the post-tax losses of associate company Farmers Boy (Deeside). Cranswick’s pre-tax profit declined to £18.5 million from £23.8 million a year ago.

On a like-for-like basis Cranswick’s sales increased by 6%, reflecting strong volume growth across most categories. Fresh pork sales in the first six months rose by 14% to £143 million. Sausage sales were 6% ahead at £37 million. During the first half, bacon sales increased by 30% to £24 million, and underlying sales of cooked meats were up by 4% to £119 million. Indeed, pigmeat products have gained an increased share of the UK retail protein market due to the versatility and low relative price of pork compared to other proteins. Cranswick’s sandwich sales also increased in the period by 3% to £25 million.

”Current trading is good and much improved and the group is, with the exception of continental products, seeing growth across each of its categories. The company’s customer base continues to grow and new products are constantly being developed, either in existing categories or in new areas,” points out Bernard Hoggarth, chief executive of Cranswick. “With over £100 million invested in the group’s infrastructure over the past five years, its facilities are class leading. New product development teams which are the envy of the competition and a continued focus on customer service are key factors in the group continuing to be first choice supplier to its customers.”