Cranswick serves up rise in first half profits

Gourmet sausage maker Cranswick said high demand for its products helped lift half year adjusted profits by 22% to £31.5m.

The company, which supplies sausages to Tesco and Sainsbury's under their own label lines, said revenue jumped almost 10% to £529m, higher than management expectations.

Export sales to key Far East markets increased by 17%. The company said 1,000 tonnes of product are being shipped to the region each week with Cranswick accounting for over 50% of all pig meat exports from the UK.

The company said pig prices remained relatively stable during the period compared to the volatility experienced in the previous three years.

UK pig prices fell 2% during the period and were on average 18% lower than during the same period last year.

“Despite this reduction, the UK price remains approximately 30% higher than its European equivalent reflecting on going high demand for British pig meat,” the company said.

There was also a positive contribution from the recently acquired Benson Park poultry business, although the company did have to book a £4.6m impairment charge on its sandwich unit after a customer said it would not be renewing a contract.