November 23, 2006

UK's Cranswick profits up by 13 percent

British pig meat processor Cranswick has seen profits rise by 13 percent the past six months to GBP247.8 million during the first half of the year. 

Profit before tax was up by 13 percent to GBP15.5 million with an increase of 12 percent in earnings per share.

Cranswick Chairman Martin Davey said it is pleasing to see continued growth at Cranswick for the six months ended September 30, 2006. Record sales and profits were achieved and cash generation was particularly encouraging, he added.

Turnover for the six months of GBP248 million was 14 percent up on the same period last year, reflecting strong organic growth. Profit before tax rose 13 percent to GBP 15.5 million and earnings per share was 12 percent ahead of the comparative interim period.

These figures include an one-time gain of GBP300,000 on the sale of a surplus freehold property.

Sales in the food division, which includes the original agribusiness activity, totaled GBP232 million, accounting for 94 percent of total company sales.

This is a 15 percent increase compared to food division sales of GBP202 million for the corresponding period in 2005 achieved entirely through organic growth. The company's premium categories are showing strong growth and this coupled with increased market share is driving sales, the company said.

The company said it has a talented management teams and is well positioned in a number of growth markets and has capacity in most production facilities to meet future demand.

Expansion, as and when required, would be funded through the company's strong cash position, the company's statement said.