7th Apr 2014 07:15
LONDON (Alliance News) - British food producer Cranswick PLC Monday confirmed a robust year of trading, as total sales for the year just ended rose 13%, driven by strong sales growth and increasing demand for its fresh pork, bacon and cooked meat.
The UK pork products supplier said it is confident in the development of the business as underlying sales increased 12% in the year ended March 31, while total sales for the year rose 13% after taking into account contributions from the acquisition of pig breeding and rearing activities earlier in the year. These include Wayland Farms and two additional breeding units purchased from Dent Ltd.
It said it saw strong growth across most product categories during the year, particularly fresh pork, bacon and cooked meats, while pastry sales also showed strong growth, as it settled into the newly commissioned Malton facility in North Yorkshire, and was boosted by the launch of several new product ranges during the year.
Cranswick said that export sales for the year, were well ahead of the previous year, driven by robust demand for port products in far Eastern markets.
The group said it invested more than GBP20 million in infrastructure during the year, which it used to further improve operational efficiencies and to launch new product ranges. It said its new gourmet pastry facility at Malton incurred higher-than-expected start-up costs, while work continues on the extension to its Milton Keynes cooked meats facility, which it said will add substantial capacity and deliver further efficiency gains.
Cranswick said that as expected, higher input costs due to pig prices reaching record highs during the year, hit its operating margins, and despite some recovery, expects its operating margins to be slightly lower than the previous year.
The group recently increased the size of its banking facility, resulting in an unsecured facility of GBP120 million, which it said provides generous headroom through to July 2018.
Cranswick shares are 0.7% down early Monday at 1,268.00 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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