March 2009
Cranswick ended the year strongly, with total sales in the final quarter 11 per cent higher than the previous year. Full year results are likely to be ahead of market consensus.
Sales of food products increased by 11 per cent. There were notable increases in a number of categories, with pork sales up by 23 per cent, sales of continental products 22 per cent higher and sales of bacon ahead by 15 per cent. Turnover in the pet division, which accounted for 7 per cent of total Company sales in the quarter, was up by 5 per cent. Cash generation from operating activities remained strong. Approximately £10m was spent in the final quarter acquiring the freehold of the Delico factory and a facility adjacent to the Lazenby’s factory for future sausage production expansion.
Total sales for the year were 10 per cent higher than the previous year on a like-for-like basis, excluding the animal feed business that was disposed of during the first quarter of the prior year. Food sales were 9 per cent higher and pet sales 17 per cent higher, which is pleasing given that trading has been set against a backdrop of rising input prices, significant currency fluctuations and weakening economic activity.
With strong market positions, new bank facilities and well invested plants, the Company is well placed to continue its successful development.
It is intended that the preliminary results for the year ended 31 March 2009 will be announced on 18 May 2009.
John Lindop, Group Finance Director, will be retiring from the business at the end of May when he reaches 60 years of age. John has been with the business for nearly 17 years. He will be replaced by Mark Bottomley, the current Group Financial Controller, who joined the business at the start of 2008. Mark, who is 45 years of age and a Chartered Accountant, qualified with BDO Binder Hamlyn and has several years of experience in the food production sector.
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