Fresh pork drives up Cranswick’s sales
Published:  29 July, 2013

Fresh pork sales have helped drive a 10% uplift in Q1 turnover for processor Cranwsick.

The company’s Q1 trading update revealed that the 10% revenue increase for the three months to 30 June 2013 was volume-driven and reflected good performance across the business, although fresh pork turned in the strongest results. Total sales were up 12% when taking into account the contribution from the company’s new acquisitions Kingston Foods and Waylands Farms, formerly East Anglian Pigs.

Margins remained lower than last year, partly due to start-up losses at the company’s new pastry site in Malton, but primarily due to high pig prices, which reached a new high of 169p/kg. However, Cranswick said that it had absorbed the impact of record pig prices through efficiencies and strong processing volumes.

Net debt increased by £17m in Q1 to £55m, primarily due to Cranswick’s £13m acquisition of Waylands Farms.

Investec analyst Nicola Mallard said that Cranswick had a “strong start to the year” and predicted the company would benefit from easing pig prices in the coming months.

“The inflation in UK prices is due to strong demand for UK-reared product, which remains in tight supply. But as there is typically a seasonal peak in prices, we should see some easing as the summer progresses, reducing pressure on Q2 margins in due course,” she said.

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