FDBusiness.com

UK meat processor Cranswick has cautioned that rising raw material costs undermined its margins and that operating profit for the first half will be below the corresponding period last year. The company is in discussions with customers about rising input costs but the extent and the time lag in recovering these together with other inflationary pressures will impact its financial performance.

Cranswick, which supplies fresh pork, sausage, bacon, cooked meats, charcuterie and sandwiches to food retailers, food service operators and manufacturers, has also warned that the full year result will be below its original expectation. According to Cranswick, the difficulties facing the UK consumer and the dynamics of the competitive UK market in which the company operates are making the current financial year more demanding than usual.

Cranswick achieved pre-tax profit of £47.1m on turnover of £758m last year. However, the board remains confident, given Cranwick’s sound financial position, of the continued long term success and development of the business.