Investors regained their appetites for meat producer Cranswick today as the group said it was recovering from a fall in fresh pork sales.
Shares rose 5% despite the Hull-based firm reporting revenues 0.4% lower at £481.5 million for the six months to September 30.
Pre-tax profits fell 5.4% to £24.6 million though stripping out one-off charges they were ahead by 11.4%.
The firm, which supplies products to a range of supermarkets, said fresh pork sales - which it had previously said would be lower - were down 13%.
But chief executive Adam Couch said this was "due to business lost at the start of the year which is now being recovered".
Meanwhile, sausage sales were slightly ahead, despite strong growth in premium products being dragged down by weaker demand for frozen and mid-market ranges.
Mr Couch pointed to industry data showing sales of premium sausages which it predominantly produces growing ahead of lower-price offerings.
Sales of bacon were up by 3% and during the period, Cranswick won sole supply status for premium bacon and gammons with one of its lead retail customers, the group said.
Cooked meat, pastry, continental products and sandwiches also grew.
Chairman Martin Davey said Cranswick was affected by a shift in consumer habits including smaller but more frequent shopping trips, less food wastage, and the growth of convenience sector, all hitting the major supermarkets.
He said these factors "added to the pressures in the competitive environment in which we operate".
Cranswick also today disclosed details of its purchase of Hull-based premium British poultry provider Benson Park, for an initial £17.7 million.
Sahill Shan, an analyst at N+1 Singer, said: "The market should be reassured by the broad tenor of today's interims.
"It is encouraging to hear that to date it has not witnessed any adverse earnings drag from a difficult supermarket trading environment, but investors should remain alive to this structural risk."
The results come as a new report shows the pressure on the food-supply chain as supermarkets squeeze producers in order to cut check-out prices - as they face a squeeze from discount rivals Aldi and Lidl.
Accountancy firm Moore Stephens said 146 food producers entered insolvency in the year to the end of September, up 28% from 114 a year before.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereComments are closed on this article