Meat processor Cranwick’s fresh pork business was “the stand out performer” in the firm’s interim results for the six months to September 30, says City analyst Panmure Gordon.
Year-end debt
Cranwick’s net debt was in line with expectations at 37.2M. The analyst expected year-end debt to close at about 30M.
Investec predicted a full recovery by the start of next financial year and retained its ‘buy’ recommendation on the firm’s stock.
The analyst N+1 Singer noted “slightly weak spots” in the firm’s continental products – down by 3%, reflecting the loss of a key customer and – down 5% after product rationalisation.
“Operationally the key commentary is around recovery of high input cost inflation,” said analyst Sahill Shan. “It seems success to date has been partial. Efficiency savings, volume growth and constructive discussions with customers have seemingly helped some cost recovery but clearly not to the full extent to recover the margin squeeze.”
Results were “a tad on the disappointing side”, said Shan.
Cranswick chairman, Martin Davey, described the first half results as quite positive.
“Continued growth in sales, significant investment in the asset base, most notably the commissioning of the new pastry facility, along with the strategic development of the company's pig breeding and rearing activities were all positive features of the six months trading,” said Davey. “The increase in sales is especially encouraging.”
The firm’s board predicted full-year performance will be in line with its expectations.
