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Cranswick Sales Better, But Rising Costs Will Hit Year-end Profits

by 5m Editor
4 February 2008, at 1:06pm

LONDON - Pigmeant Processing business Cranswick says that total sales in its third quarter to 31 December 2007 increased by 18 per cent, compared to the same period last year, following adjustments for the sale of its animal feeds business in May 2007.

Thomson Financial reports that this was ahead of analysts' forecasts. Citigroup had anticipated growth of 14 per cent in the period.

Food Sales Grow

The company, which makes Taste the Difference pork products for J Sainsbury PLC and also supplies Tesco PLC, said most product categories showed double digit growth, with sausage and bacon performing particularly well and benefiting from investment in additional capacity during the year. Sales in the food division were up 17 per cent on the previous year.

Cranswick said the food division has suffered some sales price deflation during the second half as well as rising input costs in pigmeat, beef and poultry.

It is currently finding it difficult to pass the full impact of rising costs on to customers but discussions are ongoing.

The company is assuming that a continuation of current conditions, and the impact of the fall in currency values will exert a negative impact on financial performance to end of March 2008.

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5m Editor