UK pork processor Cranswick today (29 July) reported an increase in quarterly sales but said margins were down amid higher pig prices.
Cranswick said underlying sales for its first quarter – which ran until 30 June – were up 10% year-on-year thanks to “strong growth” across most of its product categories.
Total sales, which included the impact of acquisitions made in the last year, increased 12%.
However, Cranswick said operating margins were lower than those generated in its last financial year. It cited higher input costs and start-up expenses for its new pastry facility. The site in Noth Yorkshire was completed during the quarter.
The company, meanwhile, said it had started work on extending its Delico cooked meats site in Milton Keynes.
Looking ahead, Cranswick said it was “confident in the continued long-term success and development of the business”.
Shares dipped 0.34% by 09:46 to GBP11.64 but Cranswick’s stock has increased over 37% in 2013. Despite the lower margins in the quarter, analysts at Investec, Panmure Gordon and Shore Capital stuck to their forecasts for Cranswick’s full-year earnings.