Sponsored by
Cranswick reports increased profits and sales
FOOD producer Cranswick PLC has continued its record of growth despite the worsening effects of the credit crunch on consumer spending.
Cranswick's unaudited results for the six months ended September 30 show sales up nine percent at 321.2m (2007: 294.3m) and profit before tax rose five percent to 18.5m (2007: 17.6m).
Chairman Martin Davey said: "It is pleasing to be able to report once more that Cranswick has continued its record of growth. This is especially encouraging given the challenges of raw material inflation, significant currency fluctuations and weakening economic activity.
"In the food business there was success in growing the range of products supplied into our customer base across the categories of premium, standard plus, standard and 'value'.
He said: "It was good to see growth in sales of 'air-dried' bacon from the new bacon factory following substantial recent investment. Further growth in the customer base for this premium bacon is anticipated during the second half of the year.
"Investment continues to be made in new product development to bring fresh ideas to the consumer.
"Whilst enormous cost pressures have been experienced, and dealt with, over the past year the signs are that this inflationary element has peaked. The company is strongly cash generative and has proven management teams across the group in which the board has full confidence to continue Cranswick's successful development."
Turnover in the period was 321.2 million, an increase of nine percent on that achieved in the same period last year. On a like-for-like basis the increase was 10 percent, the difference being turnover attributable to the animal feed business which was sold in May 2007.
Profit before tax at 18.5 million is up five percent on a year ago, prior to the exceptional gain which arose on the sale of the feed business. Earnings per share on the same basis, prior to the deferred tax charge referred to below, rose 8 percent to 28.9 pence per share.
Earnings per share post the exceptional deferred tax charge was 14.0 pence.
Sales in the food business increased by nine percent on a like-for-like basis to 298.7 million, which included the impact of inflation, as the company sought to pass on higher raw material costs.
There were notable increases in a number of sales categories.
Pork sales were 10 percent higher; sales of cooked meats and sausages each increased by eight percent; sales of continental products were up by seven percent and bacon and sandwich sales both rose by 24 percent.
The time lag that typically occurs before rising raw material prices can be incorporated into selling prices meant that it was necessary for some of those higher costs to be absorbed by the business.
Mr Davey said: "There was success in growing the range of products supplied into our customer base across the categories of premium, standard plus, standard and 'value'.
"It was good to see growth in sales of 'air-dried' bacon from the new bacon factory following substantial recent investment. Further growth in the customer base for this premium bacon is anticipated during the second half of the year.
"The first phase of the development at the pork processing site is nearing completion and a site has been acquired adjacent to the sausage production facility which is being earmarked for the medium term expansion of this aspect of the business."
Investment continues to be made in new product development ('npd') to bring fresh ideas to the consumer. This embraces a significant number of products and processes including 'Freedom Foods' accredited fresh pork, Wiltshire and other specialist cure bacon and gammons, the ongoing roll-out of the 'Simply Sausages' brand and numerous developments within cooked meats.
The broadening of the product range is not limited to 'npd' and meat products. For the first time the company has introduced a range of continental cheese to the customer base and within sandwiches the popular combinations are supported by regular introduction of new lines.
Sales in the pet business were 26 percent ahead of last year at 22.5 million. Inflation was confined primarily to the bird food activity whereas there was a relatively stable environment in aquatics.
Sales in the pet products business rose by 34 percent and it was good to see convenience sized packs of both own brand and private label products in a wide range of retail outlets.
The Nature's Feast brand is now recognised as one of the category leaders and represents innovation, quality and excellent value.
Aquatic sales were 10 percent higher reflecting continued strong growth in marine livestock. During the period the 'Aquaray' aquarium lighting range was launched and initial reaction has been extremely positive.
This provides the marine hobbyist with a number of benefits including substantial energy savings compared to other products.
The new Lisbon branch opened on schedule during October and provides the opportunity to increase sales in both Spain and Portugal.
Email to a friend
Print this page
Looking for...
Featured advertisers
Jobs
Search for a job
Motors
Search for a car
Property
Search for a house
Weather for Beverley
Tuesday 07 February 2012
Today
Cloudy
Temperature: -3 C to 4 C
Wind Speed: 16 mph
Wind direction: South east
Tomorrow
Sunny
Temperature: -4 C to 2 C
Wind Speed: 12 mph
Wind direction: South
