UK pork processor Cranswick reported higher underlying profit – but a dip in reported earnings – for the first half of the year.
For the period ended 30 September, the meat processor reported net profit of GBP19.2m (US$30.0m), compared with GBP21.1m last year. Adjusted earnings per share, however, were 7.3% up at 41.1 pence when excluding valuation movement on biological assets and release of the GBP1.1m provision for contingent consideration payable to the previous owners of Kingston Foods, which it acquired in June 2013.
Go deeper with GlobalData
Operating profit was down to GBP25m compared with GBP23.6m. When adjusted, operating profit was GBP26.2m compared with GBP23.6m.
Sales fell to GBP481.5m against GBP483.5m last year.
Cranswick said sales had been impacted by the rise in market share of the convenience sector and discounters, which hit sales at the major grocery retailers and in turn “added to the pressures in the competitive environment,” in which Cranswick operates.
Nevertheless, chairman Martin Davey said the overall performance for the first half was in line with the board’s expectations.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataAnalysts at Shore Capital upgraded their forecasts of the business to reflect the Benson Park acquisition announced last month.
“We see the acquisition as highly complementary to Cranswick’s strategy, extending its protein range and broadening the customer base, particularly in the fast growing Foodservice/ Food-to-Go markets in the UK, said Darren Shirley analyst at Shore Capital.
“We are confident the group will return to organic sales growth in H22015 and, supported by the contribution from Benson Park, we forecast FY2015 sales growth of c2.9%, so c6% yoy growth through H22015F,” he added.
Click here for the full results
