Cranswick serves up juicy interim profits and dividend
Food producer Cranswick unveiled a succulent set of first-half numbers, with profits plumped up by acquisitions in its poultry and pork businesses, but a pinch of salt to be taken ahead of the important festive period.
For the six months ended 30 September, revenue for the Yorkshire-based meat specialist of £580.8m was up 15.9% on the same period last year, while underlying revenue rose 8% and export were boosted by “particularly strong” sales to the Far East that surged 83%.
With the operating margin edging up to 6.6% from 6.2%, adjusted pre-tax profit climbed 24% to £37.9m, while statutory pre-tax profit surged 38.4% to £40.4m.
This was due to a strong contribution from the Crown Chicken chain following the £40m acquisition in April, which is combining with the company's existing poultry business, and the acquisition of Dunbia Ballymena in November, which added to the FTSE 250 company’s pork processing capability. The company also sold The Sandwich Factory in July for £16m.
Earnings per share gained 16.6% to 58.3p, while statutory earnings per share was 30.8% higher to 62.5p.
With operating cash swelling 8% to £38.4m and net debt narrowed by 29.5% to £2.9m despite the £24m spent on acquisitions, directors declared an interim of 13.1p per share, up 12.9% from last year.
Chairman Martin Davey said: "The business performed strongly during the first half of the year… Cranswick has made further commercial and strategic progress during the period whilst working closely with customers to maintain its focus on service, quality and innovation in delivering appealing and competitively priced products to the consumer.
"The board believes that Cranswick remains well positioned to deliver our expectations for the current financial year and also to meet the challenges that may arise as it continues its successful long-term development".
The second phase of the upgrade to the Norfolk primary processing facility, which is part of the company's ambition to gain accreditation for the site from the UD department of agriculture, was completed in the period and work will start shortly on a new £25m continental foods facility in Bury, Lancashire.
Shares in Cranswick were up 3.76% to 2,371p at 0811 GMT.