Positive Performance by Cranswick
Despite having to contend with record input prices and tough trading conditions within the UK food retailing market, Cranswick has delivered increases in both sales and profits for the year ended 31 March 2014.
Cranswick supplies a range of fresh pork, gourmet sausages, premium cooked meats, traditional air-dried bacon, charcuterie, pastry products and sandwiches to its customers from a number of production facilities in the UK.
Total sales, which include a small amount of third party sales from the pig breeding and rearing activities acquired in the year, rose 14% to £995 million in 2013 and included particularly significant increases in fresh pork, bacon and cooked meats. Underlying sales increased by 12%. Adjusted operating profit rose 6.4% to £53.3 million although operating margins were slightly below those of the previous year on account of the increase in input prices. Reported profit before taxation was £54.8 million, up 16%.
During the year, Cranswick invested in pig breeding and pig rearing activities, and these operations now supply 15-20% of the company’s weekly British pig requirements. 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. Other investments added capacity and improved operating efficiencies enabling Cranswick to absorb some of the supply chain inflation. Cranswick invested £28 million in its infrastructure during the year, bringing total capital expenditure to more than £130 million over the last five years.
Martin Daveym chairman of Cranswick, comments: “This has been a positive, albeit challenging, year for Cranswick. The business has 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.”
He continues: “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’.”
