Cranswick Q3 sales surge as appetite for pork returns
British pork supplier Cranswick Plc enjoyed record sales in its third quarter as demand for sausages and bacon regained its momentum.
Cranswick's quarterly revenues jumped to GBP200 million (US$319.6 million), up 31%, getting an additional boost from CCF Norfolk. Cranswick acquired the food processing company in mid-2009 and has since increased its capacity by 20% through investing GBP3 million (US$4.79 million).
The company is currently enlarging the Lazenby sausage factory and is planning additional investment in its Sherburn bacon plant. The two facilities will allow the company to boost its sausage output by 50% and could lift bacon sales threefold to GBP100 million (US$159.8 million).
The company added that it would continue looking at acquisitions and expected capital spending of about GBP15-20 million (US$23.9-31.9 million) for the year.
Meanwhile, Cranswick chairman Martin Davey remains confident of meeting analysts' increased estimates for full-year pretax profit as pork has gained popularity over beef and lamb.
Analysts are forecasting a pretax profit of GBP42-43.5 million (US$67.1-69.5 million) for the year ending March 31.
Cranswick shares were up 3.1% at 778 pence at 1302GMT on the London Stock Exchange.