Analysts said the company had performed ahead of expectations, with a broadly spread sales growth and strong balance sheet in spite of significant ongoing investment.
The audited preliminary results, for the year ending 31 March 2012, showed underlying sales ahead by 10%, with reported revenues up 8% at £821m. Operating profit was down 5% at £46.7m, with pre-tax profits up 3% to £48.4m and net debt reduced by £26.6m to £21.7m.
The company said that the increasing popularity of pork products had led to an increase in sales volumes, partly as a result of the competitive price of pork compared to most other proteins. Bacon sales increased by 39%, with fresh pork up 15% and sausage sales gaining 12%.
The early half of the year saw strong raw material price increases and“unprecedented resistance” by customers to raw material inflation recovery, but this eased towards the second half, and very successful Christmas trading helped margins to recover. Export sales were also buoyant in the third and fourth quarter, particularly to Far Eastern markets.
Cranswick focuses predominantly on the supply of fresh and processed food to the UK food retail market. Last year, the company’s fresh pork processing plant in Preston site was accredited by the USDA.
