February 1, 2013

Cranswick's Q3 revenue rises 7%

Despite record pig prices in UK, Cranswick reported a 7% rise in underlying revenue for the third quarter.

Cranswick processes and supplies fresh pork, sausage, bacon, cooked meats, charcuterie, pastry products and sandwiches to food retailers.

The company, whose supermarket customers include J Sainsbury and Tesco Plc, said input costs rose during the quarter ended December 31, with UK pig prices reaching a record level in December.

Though margins were initially impacted, successful pricing discussions with customers helped partially mitigate the full impact, the company said.

The company had warned in October that pig prices in the UK had touched a three-year high and were expected to continue rising, driven by high livestock feed prices and implementation of animal welfare norms in Europe.

The company, which supplies to brands such as Weight Watchers and celebrity chef Jamie Oliver's food products range, said total sales rose 8%, including a contribution from Kingston Foods, which Cranswick acquired in June.

Shares in the company closed at GBP9.38 (US$15) on the London Stock Exchange on Wednesday (Jan 30). They have risen about 22% over the past year.