• Operating profit up 15.7%
  • Sales climb 13.7%
  • Efficiency, pricing offset pig meat cost inflation
Cranswick FY earnings beat street expectations

Cranswick FY earnings beat street expectations

UK meat group Cranswick saw off the challenge of rising pork prices to book expectation-beating full-year profits this morning (19 May).

The company posted a 15.7% rise in operating profit to GBP55.8m (US$93.8m) for the year to the end of March. Net profit was GBP43.2m, up 19.6% on a year earlier.

Cranswick's higher profits came as sales grew 13.7% to GBP994.9m. Cranswick also benefited from changes to the valuation of the pig herd in the year. Last year's results also included one-time impairment charges.

While pig meat prices reached a "new record high" in July, the group was able to offset the cost through "constructive discussions" with customers, operating efficiency gains and internal pig rearing.

Shore Capital analyst Darren Shirley said the result was "comfortably ahead" of market expectations. "For Cranswick to deliver such robust sales and profit growth through a period when the UK consumer remained under pressure, UK grocery volumes were flat to negative and the group's primary input cost (UK pigs) reached and sustained record prices is, in our view, an outstanding achievement," he wrote in a note to investors.

Cranswick shares were up 2.75% at 09:45 BST today.

Show the press release

CRANSWICK plc: PRELIMINARY RESULTS

  A positive performance despite challenging market conditions

Cranswick plc ("Cranswick" or "the Company" or "the Group"), the food producer, announces its audited preliminary results for the year ended 31 March 2014.

FINANCIAL HIGHLIGHTS

·     Strong underlying revenue1 growth, up 12 per cent at £980.6m (2013: £875.2m)

·     Adjusted profit before tax up 6 per cent to £52.2m (2013: £49.1m)

·     Adjusted earnings per share2,3  up 7 per cent to 84.1p (2013: 78.7p)

·     Recommended final dividend of 22p - up 7 per cent

·     Net debt 15 per cent lower at £17.0m (2013: 20.1m)

OPERATIONAL HIGHLIGHTS

·    £14.4m investment in pig breeding and rearing activities

·    New gourmet pastry facility fully commissioned

·     £28m investment in Group's asset base

 

Summary results

 

Adjusted results

2014

2013

Movement

Reported revenue

£994.9m

£875.2m

+14%


 

Underlying revenue 1

£980.6m

£875.2m

+12%


 

Adjusted Group operating profit 2

£53.3m

£50.0m

+6%


 

Adjusted profit before tax 2, 3

£52.2m

£49.1m

+6%


 

Adjusted earnings per share 2, 3

84.1p

78.7p

+7%


 

Dividend per share

32.0p

30.0p

+7%


 

Net debt

£17.0m

£20.1m

-15%


 

 

Statutory results  

2014

2013

Movement

Reported revenue

£994.9m

£875.2m

+14%


 

Underlying revenue 1

£980.6m

£875.2m

+12%


 

Group operating profit

£55.8m

£48.2m

+16%


 

Profit before tax

£54.8m

£47.3m

+16%


 

Earnings per share

88.7p

74.9p

+18%


 

Dividend per share

32.0p

30.0p

+7%


 

Net debt

£17.0m

£20.1m

-15%


 

Original source: Cranswick