Cranswick Reports Good Growth in Profits19 May 2014
UK – UK pig meat processor and food manufacturer Cranswick has seen pre-tax profits grow by six per cent over the last year.
Profits rose to £52.2 million over the year compared to £49.1 million last year.
This was on the back of a 12 per cent growth in revenue – up to £980.6 million from £875.2 million in 2013.
Total sales, which include a small amount of third party sales from the pig breeding and rearing activities acquired in the year, of £995 million were 14 per cent ahead of the previous year and included particularly significant increases in fresh pork, bacon and cooked meats.
The investment of £14.4 million in pig breeding and pig rearing activities that operate under Wayland Farms and Wold Farms supply 15 to 20 per cent of the company’s weekly requirements.
The company said that this strategic development enhances Cranswick’s commitment to, and gives greater control over, a robust and integrated supply chain with a clear focus on premium British ingredients. In addition, it has helped offset some of the impact of the rise in input prices.
Further investment in new product categories came with the commissioning of the Yorkshire Baker pastry facility in Malton, North Yorkshire.
The site produces a range of premium pastry products including pies, sausage rolls and quiches and was operational from summer last year. Commissioning costs and the challenges of a start-up have been absorbed whilst growing the sales and developing the range in partnership with the customer base.
Other investments in the year added capacity and improved operating efficiencies enabling the Company to absorb some of the supply chain inflation.
Cranswick Chairman Martin Davey said: “This has been a positive, albeit challenging, year for Cranswick. The business had to contend with record input prices, the impact on its customer base of the changing dynamics of UK food retailing and an environment where the consumer has been subject to ongoing financial constraints.
“Strong growth in both total and underlying sales was recorded and this reflected market share gains along with further growth in those categories in which the group is positioned in the UK market. Export sales continued to grow and this achievement was recently recognised by the industry with Cranswick being named ‘Exporter of the Year’.
“During the year the Company invested in pig breeding and pig rearing activities. This strategic development enhances Cranswick’s commitment to, and gives greater control over, a robust and integrated supply chain with a clear focus on premium British ingredients.
“The past year has seen another positive performance from the Company and the Board looks forward to the challenges and opportunities that lie ahead as it pursues the continuation of Cranswick’s successful long term development.”
ThePigSite News Desk