Sales continue to rise for Cranswick

FOOD producer Cranswick has seen sales surge in recent months, helped by last summer’s acquisition of a Norfolk pork processor.

The Hull-based group said sales for the three months to December 31 were £200m, up 31% on the same period in 2008.

The third quarter figures exclude sales from Cranswick’s pet products business, which was sold for £17m in April to a management team backed by private equity firm LDC, but include its June acquisition of Bowes of Norfolk – now called Cranswick Country Foods Norfolk.

Cranswick, which produces sausage and bacon products as well as sliced meats and sandwiches for customers including major supermarket chains such as Sainsbury’s, said 17% of the sales rise was down to organic growth, with 14% attributed to CCF.

Sales were up across all its food categories, with fresh pork up by 70%, bacon up by 61%, and sausages rising by 21%.

Cranswick said it had maintained its operating margins and was cutting costs at the new CCF site. Net debt rose by £6m to £67m which the company said reflected an expected seasonal uplift in working capital. The group’s debt is still below the 2008 figure of £74m.

In the trading statement Cranswick said it remained in a strong position in each of its markets supported by production facilities in which there has been substantial.
“This investment has now provided the company with some of the best food processing sites in the industry,” it said.