- Record sales and profits
- Continued margin expansion
- 35th year of dividend growth
Premium food producer Cranswick (CWK) reported record full-year revenue and pre-tax profit, ahead of market forecasts, sending the shares up more than 4% to a new high of £54.90.
Despite a 10% pullback in the shares on 12 May following an investigation into animal cruelty at a Lincolnshire farm, the shares are up 24% over the last 12 months compared with a 1% advance in the mid-cap FTSE 250 index.
SUSTAINABLE GROWTH
Revenue for the year to 29 March increased 6.8% to £2.72 billion, up 6.4% on a like-for-like basis, while adjusted operating profit increased 14% to £206.9 million on a comparable 52-week basis.
The adjusted operating margin expanded by 0.48% to 7.6%, reflecting a ‘strong’ contribution from the group’s growing agricultural operations, ‘excellent’ capacity utilisation and tight cost control.
Over the last decade Cranswick has grown revenue, adjusted pre-tax profit, earnings per share and dividend per share by more than 10% per year. The proposed 12.2% increase in the full year dividend marks the 35th consecutive year of dividend growth.
Strategic highlights include 10 years’ sole supply of British pork, sausage, premium bacon and cooked meat to Sainsbury’s (SBRY) and the extension of the Tesco (TSCO) Sustainable Pig Group.
In December 2024, the company’s China export licence at its Norfolk processing facility was reinstated after four years of suspension contributing to a strong increase in Far East export revenues.
Meanwhile, revenue in the pet food business acquired in 2022 increased by almost 50% as the relationship with Pets at Home (PETS) continues to gather pace.
WHAT THE COMPANY SAID
Chief executive Adam Couch commented: ‘We are accelerating the pace at which we invest to drive strong returns. This year we spent a record £138 million across our business to add capacity, expand capability and drive further efficiencies through automation and scale.’
Looking ahead, the company said trading in the current financial year was in line with expectations.
Shore Capital’s Darren Shirley raised his 2026 forecasts by around 5% across the board, commenting: ‘So much to like and so much more to come in our view.’
