Cranswick confident in trading performance

FOOD producer Cranswick anticipates that its annual trading performance will be at the upper end of market forecasts.

The Hull-based company said that total sales for the year were 22% higher than the previous year, excluding sales from its pet business, which was sold last April.

The increase reflects organic growth of 11% and a further contribution of 11% from CCF Norfolk, which was acquired in June 2009.

In the fourth quarter, excluding sales from the pet business, revenues increased by 18% compared to the same period last year, of which 14% was attributable to CCF Norfolk.

During the period a higher proportion of fresh pork sales were made internally and there was a small reduction in sales of continental products.

In a fourth quarter trading update today, Cranswick said: “All other categories delivered the strong growth seen in the first nine months of the year, with bacon sales increasing by 70% and sales of fresh pork, reflecting the contribution from CCF Norfolk, were 45% higher.

“Sandwich sales were ahead by 18% and sales of cooked meat and sausages were ahead by 8% and 6% respectively.

“The operating margin in the underlying business is expected to be similar to that achieved in the first nine months of the year, while progress continues to be made in driving through operational efficiencies at the CCF Norfolk site.

“Cash generation from operating activities has remained strong through the final quarter resulting in  a year-end net debt lower than the previous year.”

The company’s preliminary results for the year ended March 31 will be announced on May 24.