Cranswick tastes sales success

The Hull-based group said the three months to 31 December had seen its run of success continue, with total sales of 200 million, an increase of 31 per cent compared to the same period the previous year, excluding sales from the pet business which was sold in April 2009.

Cranswick said the rise was made up of organic growth from the underlying business of 17 per cent and 14 per cent from CCF Norfolk, which was acquired in June.

The firm, which provides pork products to nearly every retailer in the UK, including Bradford-based Morrisons, Leeds-based Asda, the Co-Op, Sainsbury's, Tesco, Marks & Spencer, Waitrose and the leading discount chains, said there were notable sales increases across all categories.

Fresh pork was ahead of the same period last year by 70 per cent, including the contribution from CCF Norfolk. Bacon sales were up by 61 per cent and sales of sausages, cooked meats and continental products increased by 21 per cent, 17 per cent and 9 per cent respectively.

Sandwich sales improved strongly and were ahead of the same period last year by 16 per cent.

The firm said in a trading statement: "Operating margin in the underlying business was maintained at a level similar to that achieved in the first half of the year, whilst progress continues to be made in driving through operational efficiencies at the CCF Norfolk site."

After a seasonal increase in working capital, net debt rose from 61 million to 67 million during the quarter, but was below the previous year's level of 74 million, Cranswick said, stating that it was strong cash generative nature business.

It added: "Cranswick remains in a strong position in each of its markets supported by production facilities in which there has been, and continues to be, substantial ongoing investment in pursuit of improved efficiencies and increased capacity.

"This investment has now provided the company with some of the best food processing sites in the industry."