Cranswick’s first-half profit rises but higher pig prices a concern

PORK processor Cranswick reported a 21 per cent rise in half-year profit but said that higher pig prices witnessed during the period had continued into the second half.

The Hull-based company last month warned that pig prices in the UK were at record levels and were expected to continue rising, driven by high livestock feed prices and implementation of animal welfare norms in Europe.

Cranswick, which processes and supplies fresh pork, sausage, bacon, cooked meats, charcuterie, pastry products and sandwiches to food retailers, said discussions on price increases with its customers were underway and were progressing well.

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The company said it expected a more balanced trading performance between the first and second halves, compared with last year when there was a strong second-half bias.

April-September pre-tax profit rose to £22.5m from £18.5m a year earlier. Revenue increased 6 per cent to £418.6m, with underlying revenue up 5 per cent.

Cranswick, which supplies to brands such as Weight Watchers and celebrity chef Jamie Oliver’s food products range, said sausage sales increased 15 per cent despite unusually soggy weather in the UK.

The company, whose supermarket customers include Sainsbury’s and Tesco, has so far benefited from cost-conscious Britons opting for pork as cheaper alternative to beef, lamb and poultry.

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The company raised its interim dividend to 9.4 pence per share from 9 pence a year earlier.

Shares in Cranswick closed at 739 pence on the London Stock Exchange on Friday. They have fallen more than 9 per cent in the last six months.