Further sales boost for Cranswick

by ADAM AIKEN - 02/02/2010

"Cranswick Country Foods - the company behind the former Bowes of Norfolk - yesterday reported healthy trading figures, with sales soaring in the third quarter of the year."

The company said sales in the three months to December 31 were £200m, up 31pc year on year, excluding sales from the pet business that was sold last April.

Cranswick said the figures included like-for-like growth of 17pc, and a 14pc growth contribution from Cranswick Country Foods Norfolk - the operation at Watton that was bought last June.

Sales of fresh pork were up 70pc on an annual basis, in part thanks to the contribution of CCF Norfolk. Meanwhile, bacon sales were up by 61pc, and sales of sausages, cooked meats and continental products rose by 21pc, 17pc and 9pc respectively.

Cranswick's debt increased from £61m to £67m during the third quarter, but that figure was lower than the previous year's £74m.

In yesterday's trading statement, the business said: "Cranswick remains in a strong position in each of its markets, supported by production facilities in which there has been, and continues to be, substantial ongoing investment in pursuit of improved efficiencies and increased capacity."

Cranswick has pumped £3m into its Watton abattoir. Since the Bowes deal last summer, the abattoir has increased throughput by about 30pc.

Cranswick is also investing £12m in a new abattoir at Hull, which will see slaughter capacity increase to 30,000 pigs a week.

In total, the group is processing about 20pc of the total UK weekly kill of 155,000 pigs.

Yesterday's trading update was welcomed by City analysts.

In a briefing note, Brewin Dolphin said: "Cranswick's third-quarter like-for-like sales growth of 17pc is ahead of our expectations, with growth rates strengthening from an already impressive first-half performance in spite of inflation reducing to zero. The recently acquired CCF Norfolk also produced strong growth.

"Encouragingly, Cranswick is continuing to invest in state-of-the-art facilities, adding significant capacity to its fresh pork, sausage and bacon businesses."

Cranswick yesterday confirmed it was to enter into a joint venture with Jamie Oliver.

The food producer will provide all the meat and pasta for the celebrity television chef's range, which has already been launched to retailers and is expected to appear in stores in the spring.

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