UK pork supplier Cranswick said price cuts implemented in the last 12 months have boosted sales but are likely to have had an impact on full-year margins.
In a trading update for the year to the end of March, Cranswick reported a 10% increase in sales, reflecting “positive” contributions from all product categories.
Go deeper with GlobalData
However, the company said although lower pricing helped volumes, it hit operating margins. Cranswick said it had recovered part of its margins as the year progressed but admitted they would be below the level achieved last year.
Nevertheless, the group hailed a GBP20m (US$32m) investment drive during the year to deliver new product ranges.
“Good progress has been made following the challenges of the first half and the board looks forward positively to the long term development of Cranswick,” the company said.
In addition, Cranswick said it had sold its 49% stake in cooked meats business Farmers Boy to the joint venture’s partner supermarket Morrisons for an undisclosed sum.
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 GlobalDataShore Capital analyst Darren Shirley said Cranswick had delivered a “pleasing” fourth-quarter sales performance.
He said: “Cranswick continues to materially outperform the pork category reflects to us the ongoing commitment to new product development and innovation and also the benefits of an industry leading, cost efficient infrastructure.”
