Cranswick sees half-year sales growth

The company also said that during the six months to September 30, 2013, it faced the challenge of managing further significant raw material price inflation, driven by robust demand for British pig meat.

Underlying turnover in the six months was 13 per cent ahead of the same period last year, with the fresh pork and bacon categories growing “particularly strongly”. The attractiveness, versatility and low relative price of pork to other proteins remain key to this positive trend, said Hull-headquartered Cranswick.

Total sales for the six months were 15 per cent higher after taking into account the contribution from Kingston Foods, which was acquired in June last year and “modest” third party sales made by Wayland Farms which was acquired in April, primarily to meet internal requirements.

Cranswick said: “UK pig prices are likely to remain at historical highs at least through to the end of the calendar year.

“The financial year outturn will be, to a large extent, dependent on the group’s ability to mitigate these costs through further operating efficiencies and the outcome of on-going discussions with customers. The board’s current expectation is that the full year should see operating profits at a similar level to last year.

“With experienced management at all levels of the group, a strong range of products, a well invested asset base and a robust financial position, the board remains confident in the continued long term success and development of the business.”