Record pig prices and the changing landscape of the UK food-retailing industry haven't deterred progress at Cranswick (CWK). The group beat market expectations with strong growth in both total and underlying sales. The latter - which exclude the impact of the year's acquisitions - grew 12 per cent to £981m as a result of new product launches and growing customer numbers.
Pork products are still performing well against beef and lamb, and the group reported strong growth across all product categories with the exception of sandwiches. Sandwich sales fell 5 per cent after management took the decision to streamline the category's core product range.
The strong sales growth was underpinned by gains in market share, particularly in the 'super-premium' sausage and bacon ranges: consumers have started trading up from more standard products. Meanwhile, contract wins from early 2013 and strong growth in exports buoyed the fresh pork business. In the lead up to Christmas, approximately 1,000 tonnes of fresh pork products were being shipped to the Far East each week.
Broker Investec expects pre-tax profits of £55m this financial year, giving EPS of 88.2p, up from £52m and 83.7p, respectively.
CRANSWICK (CWK) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,202p | MARKET VALUE: | £589m | |
| TOUCH: | 1,202-1,204p | 12-MONTH HIGH: | 1,321p | LOW: 1,050p |
| DIVIDEND YIELD: | 2.7% | PE RATIO: | 14 | |
| NET ASSET VALUE: | 617p* | NET DEBT: | 6% | |
| Year to 31 March | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 740 | 43.8 | 69.7 | 25 |
| 2011 | 758 | 47.1 | 74.5 | 27.5 |
| 2012 | 821 | 48.4 | 78.6 | 28.5 |
| 2013 | 875 | 47.3 | 74.9 | 30 |
| 2014 | 995 | 54.8 | 88.7 | 32 |
| % change | +14 | +16 | +18 | +7 |
Ex-div: 2 Jul Payment: 5 Sep *Includes intangible assets of £131m, or 266p a share | ||||
