UK sausage and bacon supplier Cranswick has started its new financial year with a 7% increase in first-quarter sales.
Cranswick today (1 August) reported a 7.4% rise in sales for the three months between 1 April and 31 July.
The increase in sales, which came, Cranswick said, across all categories, lapped a 5% gain in underlying sales in last year's first quarter. Reported sales in the first quarter of last year were down 2% after Cranswick sold its stake in its Farmers Boy unit.
Cranswick posted an 8% increase in annual sales last year to GBP821m (US$1.28bn). Net profit was boosted by lower tax charges and rose to GBP37.5m, up from GBP35.3m in the previous year.
However, Cranswick struggled with escalating input costs throughout the year, resulting in a 5% decline in operating profit. That said, margins recovered in the second half of the year.
Reflecting on the first quarter of the new year, Cranswick said: "The current financial year has started in line with the board's expectations."
It added: "With experienced management at all levels of the group, a strong range of products, a well invested asset base and a robust financial position, the board, whilst mindful of the continuing challenges facing the UK consumer, remains confident in the continued long term success and development of the business."
