Profits drop at sausage supplier Cranswick

In its half year results, ending September 30, the Hull-based firm reported that its pre-tax profits decreased from £23.8m in 2010 to £18.5m. Its reported revenues were up three per cent at £393.9m, and its underlying revenues were up six per cent.

Cranswick’s chairman, Martin Davey, said: “It is pleasing to report continued growth in turnover in what was, and continues to be, a testing economic and consumer environment

“Pig meat products have gained an increased share of the UK retail protein market with the versatility and low relative price of pork to other proteins finding favour with the consumer.

“As previously reported to shareholders in July 2011, the company faced significant increases in input costs during the first three months of the period. This had a material impact on margins and, despite some recovery during the second quarter, was a key factor in a reduction in interim pre-tax profits to £18.5m from £23.8m a year ago.

“Trading from July to the end of the period was as anticipated and included the benefit of increased sales, both in the UK and overseas markets. The board views the remainder of the year with a degree of cautious optimism and this is reflected in the increase in the interim dividend.”

Dividend increased from 8.8p per share to 9p.

Well known for the production of gourmet sausages, the company also supplies fresh pork, cooked meats, air-dried bacon, charcuterie, sandwiches and pastry products.

Products are sold primarily under retailers own labels including Sainsbury’s Taste The Difference and Tesco’s Finest as well as under a number of brands such as Jamie Oliver, The Black Farmer, Weightwatchers, Reggae Reggae and Red Lion Foods.