Strong First Half Performance by Cranswick
Cranswick, the UK-based premium food producer, has reported a 10% increase in revenue to £529.1 million with adjusted group operating profit rising by 21.4% to £31.8 million for the six months ended 30 September 2015. Growth was supported by the contribution from Benson Park, which was acquired in the second half of the last financial year. Underlying revenue grew by 7%, with corresponding volumes ahead 10% as the benefit of lower input prices continues to be passed on to the group’s customers.
Cranswick’s core market is the United Kingdom where it provides a range of fresh pork, gourmet sausages, premium cooked poultry, charcuterie, traditional hand-cured, air-dried bacon, gourmet pastry products and sandwiches through retail, food service and manufacturing channels. It also has a rapidly developing export business serving the European, US, Australasian and West African markets. Cranswick operates from twelve well invested, highly efficient production facilities in the UK and employs over 8,000 people.
Adjusted group operating margin improved by 60 basis points to 6.0% of revenue. The improvement in group operating margin reflected the positive contribution from Benson Park, an improved performance from the Pastry business and a tight focus on cost control and operational efficiencies across the group.
Benson Park, based in Hull, is a leading producer of premium British cooked poultry products serving the fast growing ‘food to go’ sector. It has been fully and successfully integrated and recently commissioned a major capital investment programme significantly raising production capacity ahead of the peak Christmas trading period.
“The business performed strongly during the first half of the year and recorded revenue slightly ahead of the Board’s original expectations,” comments Martin Davey, chairman of Cranswick. “The company continues to work closely with its customers and to maintain its focus on service, quality and innovation to deliver attractive, competitively priced products in market conditions that are expected to remain competitive through the second half of the year. This approach, allied to a broadening product portfolio and an anticipated strong Christmas trading period, means the business remains very well placed to deliver further growth in this financial year.”
He adds: “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.”
