UK meat processor supplier Cranswick today (14 November) booked a drop in first-half profits as input costs offset higher revenue.
For the six months ended 30 September 2011, reported revenues increased by 6% to GBP393.9m (US$625m). However, higher first-quarter input costs hit margins, resulting in a profit before tax of GBP18.5m, down from GBP23.8m in the same period in 2010.
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Operating cash inflow was GBP19m, compared to GBP32.9m for the six month period last year.
Cranswick chairman Martin Davey said “significant increases in input costs” impacted profitability, despite a recovery during the second quarter.
“It is pleasing to report continued growth in turnover in what was, and continues to be, a testing economic and consumer environment,” he said.
“Pig meat products have gained an increased share of the UK retail protein market with the versatility and low relative price of pork to other proteins finding favour with the consumer.”
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By GlobalDataThe results state that export sales grew, particularly in Far Eastern markets, and inroads were also being made into the US market following the Hull fresh pork facility receiving US Department of Agriculture accreditation in April 2011.
Davey added that company execs views the remainder of the year with a degree of “cautious optimism”.
