UK pork firm Cranswick H1 profit hit by feed costs

by 5m Editor
16 November 2004, at 12:00am

UK - UK pork producer Cranswick Plc CWK.L sliced 10 percent off half-year profits after losing sandwich contracts and digesting higher feed prices, but a positive outlook helped push shares to nine-month highs.

Cranswick, founded by Yorkshire pig farmers in the 1970s to make pig feed, said pretax profits for the six months to September 30 fell to 9.4 million pounds ($17.4 million), on turnover up 8 percent to 144 million pounds.

Cranwswick has had to cope with high feed prices which have eased recently. Soya costs have fallen by a third from 220 pounds per tonne last year and cereal costs halved since August.

By 1030 GMT, shares in Cranswick rose 1.7 percent to 391.5 pence, their highest since March. The interim dividend was raised 7 percent to 4.7 pence.

Chairman Martin Davey said a series of new sandwich contract wins more than offset some losses while a new bacon venture had secured deals with several supermarkets.

"That level of interest could increase bacon production by a factor of ten," he said. "The atmosphere within the business is very positive."

Source: Cranswick PLC - 16th November 2004

5m Editor