CMD and upgraded medium term targets
20 March 2025
Cranswick plc
("Cranswick" or "the Company" or "the Group")
Capital Markets Day and upgraded medium term targets
Cranswick, a leading UK food producer, is today hosting a Capital Markets Day in London for analysts and institutional investors.
Presented by a selection of the Group's senior leaders, the event will provide an update on the Group's strategy, its successful compounding track record and how key strategic enablers will drive further growth.
Today's event will cover the following:
· Securing pig supply, driving competitive advantage and leveraging genetics capability
· Investing in fresh pork processing to add capacity and enhance automation
· Maximising the fresh poultry supply chain opportunity and growing poultry processing capacity
· Differentiated product portfolio and further premiumisation
· Strength and depth of customer relationships, including new long-term agreements
We will also outline upgraded medium term targets reflecting strengthening returns from disciplined capital allocation, as follows:
· Mid single digit organic revenue growth1
· ~7.5% adjusted operating margin2, increased from >6%
· Mid single digit adjusted EPS growth2 maintained
· Upper teens ROCE3, increased from mid-teens
· <2x Leverage4 maintained
· 90% free cash conversion5 maintained
For those unable to attend in person, a copy of the presentation and an audio recording will be made available after the event at www.cranswick.plc.uk.
Outlook
Robust demand for our core pork and poultry products has continued through the fourth quarter. The outlook for the current financial year ending 29 March 2025 remains in line with current market expectations6. No further material commentary on current trading and outlook will be provided at today's event.
Preliminary results
The Company's preliminary results announcement for the 52 weeks ending 29 March 2025 will be released on Tuesday 20 May 2025.
Adam Couch, CEO of Cranswick, commented:
"2025 marks Cranswick's 50th anniversary and today's Capital Markets Day event is a fantastic opportunity to reflect on our successful business model and strategy which have delivered strong, compound returns for our shareholders and compelling future growth opportunities.
"We are also announcing today more ambitious medium-term financial targets, reflecting the significant strategic progress we have made since first introducing these measures.
"Our relentless focus on the strengths of the business, which include industry leading investment, a clearly defined strategy, broadening product portfolio and unrivalled management team, will continue to support the future successful development of Cranswick over the long term."
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Excludes the impact of M&A. Excludes IAS 41 movement on biological assets, acquisition related amortisation and impairment of intangible assets. Adjusted operating profit divided by the sum of average opening and closing net assets, net debt, pension surplus and deferred tax. Net debt (including IFRS 16) divided by adjusted EBITDA. Defined as the sum of net cash from operating activities less interest paid, non-growth capital expenditure, net IAS 41 valuation, lease capital and lease interest divided by adjusted profit for the year. Market expectations for adjusted profit before tax as at 20 March 2025 range between £190.0m and £195.1m. The range reflects all published Broker analysis. |
Enquiries:
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Cranswick plc |
01482 275 000 |
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Mark Bottomley, Chief Financial Officer |
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Sodali & Co |
+44 207 100 6451 |
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Ben Foster / Louisa Henry / Flora Mackenzie |
Note to editors:
1. Cranswick is a leading and innovative supplier of premium, fresh and added-value food products. The business employs over 15,000 people and operates from 22 well-invested, highly efficient facilities in the UK. Cranswick was formed in the early 1970s by farmers in East Yorkshire to produce animal feed and has since evolved into a business which produces a range of high quality, predominantly fresh food, including fresh pork, poultry, convenience, gourmet products and pet food. The business develops innovative, great tasting food products to the highest standards of food safety and traceability. The Group supplies the major grocery multiples as well as the growing premium and discounter retail channels. Cranswick also has a strong presence in the 'food-to-go' sector and a substantial export business. Results for the 53 weeks to 30 March 2024 showed revenue of £2,599.3m and profit before tax of £158.4m. For more information go to: www.cranswick.plc.uk
2. At Cranswick, it is second nature for us to protect and nurture our environment while supporting people and communities to thrive. Guided by our sustainability strategy, Second Nature, we have seamlessly integrated our sustainability commitments into the core of our business model, which in turn shapes our decision-making, culture, and actions. For more information on out Second Nature strategy, please visit: www.cranswick.plc.uk/sustainability
3. This announcement contains certain forward-looking statements with respect to the financial conditions, results of operations and businesses of Cranswick. These statements involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. Nothing in this announcement should be construed as a profit forecast.
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