Cranswick (CWK) enjoyed strong sales growth at the end of last year, as low pig prices helped boost festive sales.
Total sales in the three months to 31 December 2015 were up 5% compared to Q3 the previous year, with volumes up 11%, the company said.
Like-for-like volume sales - excluding the contribution from new poultry business Benson Park - were up 10%, with revenues up 4%, as the company passed lower pig prices on to customers.
Net debt increased from £5m to £18m – well below the £57m reported at the same stage last year.
Analysts at Shore Capital said the company continued to materially outperform the broader UK grocery market, where volume growth over the equivalent period was low-single digit at best.
Cranswick attributed rising volumes to “another strong Christmas trading period”, as well as good export growth as volumes to the Far East increased 28% year on year.
Benson Park also showed good initial growth, while the pastry business benefited from a “seasonal uplift”. Sausage and bacon volumes were up despite the wider category decline in recent months.
Cranwsick’s full-year results could benefit further from falling pig prices, analysts claimed. UK prices are set to dip further in coming months despite a uplift in EU prices as a result of the introduction of a Private Storage Aid scheme.
The company added it continued to work closely with its customers and to maintain its focus on service, quality and innovation “to deliver exciting, competitively priced products” in market conditions that were expected to remain competitive through the remainder of the financial year.
Shares in the group climbed 3% over the course of the day to 2,044p on the back of the strong Christmas trading.
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