Soaring pork demand boosts Cranswick's Q3

30th Jan 2014 07:55

- Quarterly revenue boosted by pork popularity- Confident in delivering revenue growth for rest of year- High input costs mitigated by costs controlsStrong demand for pork products fuelled Cranswick's third quarter revenue with roasting joints proving particularly popular with customers over the Christmas trading period. The FTSE-250 firm, which processes and supplies fresh pork, sausage, sandwiches, bacon, charcuterie and pastry products, said underlying revenue in the three months to December 31st rose 13% from the same period last year.Total sales for the quarter were up 14%, including modest third party sales from Wayland Farms, which was bought in April 2013.The East Yorkshire based business said: "Recent market data highlighted growth in pork consumption during the third quarter, particularly of roasting joints, with this momentum maintained over the Christmas trading period. "Both the versatility and the low relative price of pork compared to other proteins were central to this positive trend. The on-going popularity of pork products continues to be a contributory factor in the increase in sales."Sales of pastry products continued to rise, boosted by the start of a range of savoury filled gourmet pies at the start of the third quarter.Input costs remained at record highs during the period, but efficiency improvements, internal pig production and pricing improvements helped to partially mitigate the full impact. As a result, there was some recovery in operating margins during the third quarter, although for the year to date it remains below the same time a year earlier. Cranswick said it is in a strong financial position, with unsecured facilities of £100m going forward."The board looks forward positively to the rest of the year," it concluded.CJ