Cranswick serves up rise in first half profits

30th Nov 2015 07:51

(ShareCast News) - Gourmet sausage maker Cranswick said high demand for its products helped lift half year adjusted profits by 22% to £31.5m.The company, which supplies sausages to Tesco and Sainsbury's under their own label lines, said revenue jumped almost 10% to £529m, higher than management expectations.Export sales to key Far East markets increased by 17%. The company said 1,000 tonnes of product are being shipped to the region each week with Cranswick accounting for over 50% of all pig meat exports from the UK.The company said pig prices remained relatively stable during the period compared to the volatility experienced in the previous three years.UK pig prices fell 2% during the period and were on average 18% lower than during the same period last year."Despite this reduction, the UK price remains approximately 30% higher than its European equivalent reflecting on going high demand for British pig meat," the company said.There was also a positive contribution from the recently acquired Benson Park poultry business, although the company did have to book a £4.6m impairment charge on its sandwich unit after a customer said it would not be renewing a contract.