Hull-based meat processing giant Cranswick said it continued to make commercial and strategic progress in line with expectations, as revenue grew over the first half due to “good control of widespread cost inflation.”
For the six months ended September 24, Cranswick reported pretax profit of £61.5 million, down 2.7% from £63.2 million a year prior.
This was despite an increase in revenue, which grew 12% to £1.12 billion from £993.1 million a year prior.
Cranswick said that this growth primarily reflected the recovery of significant and widespread cost inflation, with all four business divisions well ahead of the same period last year.
The profit fall was down to rising costs. Among them was a £3.1 million net charge booked for a product recall at its Hull Cooked Poultry facility at the start of the period.
Cranswick said inflationary pressure on its cost base are being “well controlled.”
Cranswick CEO Adam Couch said: “Our unwavering focus on quality, value, innovation and our people, along with our commitment to delivering great tasting food, created with passion for our customers and the UK consumer, continue to drive our competitive advantage.
“Notwithstanding the many challenges that we, our industry and the wider economy face, the strengths of our business, which include our diverse and long-standing customer base, breadth and quality of products and channels, robust financial position and industry leading infrastructure, will support the further development of Cranswick over the longer term.”
The company declared an interim dividend of 20.60p per share, up from 20.0p a year ago.
Its full-year guidance remains unchanged.
Cranswick shares were trading about 3% higher at £31.84.
Reporter: Holly Beveridge
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