Cranswick mitigates record pig prices, full-year profit rises

19th May 2014 07:04

- Lifts annual profit despite record pig prices- Mitigating costs, expanding in pork facilities- Increased dividend paymentBritain's largest pork processor Cranswick shrugged off record input prices to report annual growth in most of its product categories and underlined its confidence in future trading with an increased dividend payment. The FTSE-250 firm, which processes and supplies fresh pork, sausage, sandwiches, bacon, charcuterie and pastry products, said revenue grew 12% to £980.6m for the year ended March 31st while adjusted pre-tax profit rose 6% to £52.2m.Cranswick Chairman Martin Davey said: "This has been a positive, albeit challenging, year for Cranswick. The business had to contend with record input prices, the impact on its customer base of the changing dynamics of UK food retailing and an environment where the consumer has been subject to ongoing financial constraints."The East Yorkshire-based business said adjusted earnings per share climbed 7% to 84.1p while net debt reduced 15% at £17.0m."Market growth was particularly strong in the 'super premium' categories as seen with both sausage and bacon. Export sales continued to grow and this achievement was recently recognised by the industry with Cranswick being named 'Exporter of the Year'," the group explained.The group has commissioned a new gourmet pastry facility in Malton, North Yorkshire, which produces a range of premium pastry products including pies, sausage rolls and quiches. "The past year has seen another positive performance from the Company and the Board looks forward to the challenges and opportunities that lie ahead," Davey added.Cranswick has recommended a final dividend of 22p, an increase of 7% from the last time.CJ