Cranswick Continues Positive Performance

UK - The three months to December 2009 saw a continuation of the positive trading performance seen in the first half of the year for British pig meat processor, Cranswick.
calendar icon 4 February 2010
clock icon 3 minute read

Total sales for the Company in the quarter to 31 December 2009 were £200 million.

This represents an increase of 31 per cent compared to the same period last year, excluding sales from the pet business which was sold in April 2009.

The increase comprises organic growth from the underlying business of 17 per cent and 14 per cent from CCF Norfolk which was acquired in June 2009.

There were notable increases across all categories. Sales of fresh pork were ahead of the same period last year by 70 per cent, including the contribution from CCF Norfolk.

Bacon sales were up by 61 per cent and sales of sausages, cooked meats and continental products increased by 21 per cent, 17 per cent and nine per cent respectively. Sandwich sales recovered strongly, as anticipated, and were ahead of the same period last year by 16 per cent.

Operating margin in the underlying business was maintained at a level similar to that achieved in the first half of the year, whilst progress continues to be made in driving through operational efficiencies at the CCF Norfolk site.

Following the expected seasonal uplift in working capital, net debt increased from £61 million to £67 million during the quarter, but was comfortably below the previous year's level of £74 million reflecting the strong cash generative nature of the business.

Cranswick said the company remains in a strong position in each of its markets supported by production facilities in which there has been, and continues to be, substantial ongoing investment in pursuit of improved efficiencies and increased capacity. This investment has now provided the Company with some of the best food processing sites in the industry.

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