The 1 per cent rise in sales at pork producer Cranswick (CWK) last year was an impressive result given the backdrop of food price deflation. What's more, volumes actually grew 3 per cent, driven by sales of continental delicacies, premium bacon and sausages, as well as new business wins.
Exports to non-European markets, including China, Australia and Africa, soared by 23 per cent. This category remains a small part of group turnover, but a hugely important growth channel. In October, the group gobbled up cooked poultry producer Benson Park, which serves the food-to-go sector, such as the Itsu, Leon, Wagamama and Wahaca chains. This acquisition offers up potentially lucrative cross-selling opportunities.
Meanwhile, the group invested £21.1m into its assets, adding capacity and upgrading equipment. This, coupled with tight cost control, helped increase the operating margin to 5.8 per cent from 5.4 per cent, which drove adjusted profits up 11 per cent to £57.8m. This excludes a £4.2m non-cash charge on the value of Cranswick's pig herd, which explains the dip in reported pre-tax profit.
Investec expects pre-tax profit of £60m this year, giving EPS of 95p, up from £57.8m and 92p.
| CRANSWICK (CWK) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,552p | MARKET VALUE: | £765m | |
| TOUCH: | 1,550-1,554p | 12-MONTH HIGH: | 1,595p | LOW:1,164p |
| DIVIDEND YIELD: | 2.2% | PE RATIO: | 18 | |
| NET ASSET VALUE: | 674p* | NET DEBT: | 5% | |
| Year to 31 Mar | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 0.76 | 47.1 | 74.5 | 27.5 |
| 2012 | 0.82 | 48.4 | 78.6 | 28.5 |
| 2013 | 0.88 | 47.3 | 74.9 | 30 |
| 2014 | 0.99 | 54.8 | 88.7 | 32 |
| 2015 | 1.00 | 52.8 | 84.1 | 34 |
| % change | +1 | -4 | -5 | +6 |
Ex-div: 2 Jul Payment: 4 Sep *Includes intangible assets of £145m, or 296p a share | ||||
