18th May 2015 06:55
LONDON (Alliance News) - Food producer Cranswick PLC Monday reported a drop in profit in its recently-ended financial year despite a rise in sales, as it booked costs associated with the valuation of assets, amortisation of assets, and a contingent consideration following its purchase of Kingston Foods in 2012.
The pork and poultry specialist reported a drop in profit in the year ended March 31 to GBP52.8 million from GBP54.8 million the year before, even though revenue grew to GBP1.00 billion for the first time, from GBP994.9 million.
Pretax profit was hit by a GBP4.2 million valuation charge of the net IAS 41 biological assets, amortisation of acquired intangible assets of GBP0.7 million, and a GBP1.1 million contingent consideration to the previous owners of Kingston Foods, which it bought in 2012.
Cranswick said that total sales increased due to lower input prices being passed on to customers and that volumes were 3% ahead of the year before, particularly boosted by strong increases in the Continental, Bacon and Sausage ranges in the final quarter.
Cranswick will pay a final dividend of 23.4 pence, up 6.4% on 22p the prior year, making a total dividend of 34p, an increase of 6.3% on the 32p paid the year before.
"Following a year of significant commercial and strategic progress for Cranswick, the board looks forward to the opportunities that lie ahead. Cranswick benefits from some of the most efficient and well-invested production facilities in the UK food producer sector. This, in conjunction with our growing international export channels and strategy of diversifying our product portfolio, leaves the board confident that Cranswick is well positioned to continue its successful long term development," Chairman Martin Davey said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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