Cranswick (CWK) CMD 2025 summary

Strategic overview and future plans

• Focus on vertical integration, expanding farm-to-fork model, and broadening product portfolio, unmatched in UK food production.

• Growth strategy centers on consolidating core categories, expanding in fresh/added value chicken and Mediterranean foods, and diversifying into pet food and new markets.

• Major investments in automation, supply chain, and capacity, including over £100m in fresh pork sites in the last 5 years and £87m planned for the next five.

• Plans to double fresh poultry capacity with a second Eye facility and explore alternative sites for further growth.

• Strengthened customer partnerships with long-term supply agreements, including a new 10-year sole supply deal with Sainsbury’s for British pork.

Strategic priorities and business developments

• Focus on securing pig supply, leveraging genetics, and investing in pork processing capacity and automation.

• Expansion of fresh poultry supply chain and increased poultry processing capacity.

• Continued premiumisation of product portfolio and strengthening of long-term customer relationships.

• Emphasis on disciplined capital allocation and sustainability integrated into the business model.

• Ongoing robust demand for core pork and poultry products, with outlook for FY25 in line with market expectations.

Financial guidance and performance

• 10-year CAGR to March 2024: revenue +10.1%, adjusted profit before tax +13.0%, EPS +11.2%, dividend per share +10.9%.

• Upgraded medium-term targets: mid-single digit organic revenue and EPS growth, adjusted operating margin 7.5%, ROCE in upper teens, free cash conversion 90%, leverage <2x.

• Medium-term capex guidance increased to ~50% of EBITDA, reflecting a strong project pipeline.

• H1 FY25: revenue growth +6.1%, adjusted operating margin 7.5%, ROCE 18.7%, free cash conversion 110.9%.

• £795m invested in capital projects and acquisitions since FY18, maintaining a progressive dividend policy.