Promotions to hit Cranswick margin

The Hull-based company said it had delivered “a range of exciting and competitively priced products to today’s hard-pressed, financially constrained consumer”.

While promotions have driven volumes, they have had an impact on operating margin.

Cranswick said that despite a recovery as the year progressed, this will mean operating profits will come in below last year’s.

Analyst Darren Shirley at house broker Shore Capital expects pre-tax profits of £44.1m on continuing operations for the year to March 31, down six per cent on last year’s £46.8m.

Cranswick’s chief executive Bernard Hoggarth said: “Very active promotional periods have driven sales, but the operating margin will be below the previous year.”

The group has seen strong sales from its recently launched brand The Yorkshire Baker.

“Sales from The Yorkshire Baker are storming,” said Mr Hoggarth. “These are top end pies. People want value, not necessarily cheapness.”

The group has invested over £20m to improve efficiencies and launch new product ranges.