Cranswick reports strong year amid record investment, solid demand

(Sharecast News) - Cranswick reported strong full-year results on Tuesday, as record capital investment and robust demand across its core and emerging categories drove higher revenue and earnings. For the 52 weeks ended 29 March, revenue rose 4.8% to £2.72bn, or 6.8% on a comparable basis, with adjusted profit before tax up 12.1% to £197.9m and adjusted earnings per share climbing 12.6% to 273.4p.

The FTSE 250 company increased its full-year dividend by 12.2% to 101p.

Volume growth of 7.7% was supported by a strong Christmas trading period and product range expansion, particularly in premium and pet segments.

Export revenue from fresh pork rose 10.2% following the reinstatement of the Norfolk site's China licence, while poultry revenue jumped 20.3% and pet product sales surged 47.8%.

Adjusted operating margins improved by 48 basis points to 7.6%, driven by agricultural efficiencies and tight cost control.

The company committed a record £138m to capital projects, including major expansions at poultry and pork processing facilities in Hull and new capacity in hummus, dips and pig farming.

Cranswick also secured a 10-year supply deal with Sainsbury's and completed acquisitions of JSR Genetics and sausage maker Blakemans.

Return on capital employed rose to 18.5%, with net debt excluding IFRS 16 standing at £39.7m.

"This year we have made significant strategic and financial progress delivering record revenue and adjusted profit before tax," said chief executive officer Adam Couch.

"We have also continued to make substantial investments across our industry leading asset base, our farming operations and in acquisitions to support our long-term growth ambitions.

"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."

Couch said he was "delighted" to announce the acquisition of Blakemans, which he described as a "well‐invested, leading food service" sausage manufacturer.

"Blakemans is highly complementary to our existing added-value Gourmet business; we look forward to welcoming the entire Blakemans team to Cranswick and to working with them to develop the business further.

"I would like to thank everyone at Cranswick for their unwavering dedication and support.

"Our continued successful performance in challenging market conditions reflects the talent, capability and determination of our colleagues across the business."

The culture the company had fostered, centred around a clear ambition to deliver strong sustainable growth, would continue to be the key driver of success over the long-term, Adam Couch added.

"We have made a positive start to the new financial year with the UK consumer continuing to recognise the quality, value and versatility of our pork and poultry product ranges.

"Looking further ahead, I am confident that the strengths of the business which include its long-standing customer base, breadth and quality of products, robust financial position and industry leading asset infrastructure will support the successful development of Cranswick in the current financial year and over the longer-term."

At 0856 BST, shares in Cranswick were up 1.71% at 5,350p.

Reporting by Josh White for Sharecast.com.