Cranswick (CWK) H1 2025 earnings summary

Executive summary

• Achieved record first-half results with 6.1% revenue growth to £1,329.9m, driven by strong volume increases and market share gains in poultry and pet food.

• Adjusted profit before tax rose 17.4% to £95.8m, with adjusted EPS up 17.7% to 132.1p and interim dividend up 10.1% to 25.0p per share.

• Significant capital investment of £47.7m in H1, with major projects in poultry, pork, and Mediterranean foods underway.

• Free cash conversion at 110.9% and net debt (pre-IFRS 16) reduced to £0.9m, supporting a progressive dividend policy.

• Positive outlook for the full year, with performance in line with market expectations and ongoing investment in capacity and automation.

Financial highlights

• Revenue increased by 6.1% year-over-year to £1,329.9m; like-for-like revenue up 5.8%.

• Adjusted operating profit rose 16.5% to £99.6m; adjusted operating margin at 7.5% (+67bps year-over-year).

• Adjusted EPS up 17.7% to 132.1p; statutory EPS up 3.8% to 124.0p.

• Free cash flow grew 34.6% to £105.4m; free cash conversion at 110.9%.

• Return on capital employed improved to 18.7%, up 234bps year-over-year.

Outlook and guidance

• Trading remains strong entering the key Christmas period and Q3, with order books at record levels.

• Full-year financial performance expected to be in line with current market expectations for adjusted profit before tax (£189.0m–£193.0m).

• Ongoing focus on mitigating inflationary headwinds, especially from labor and National Insurance cost increases.

• FY25 CapEx guidance reconfirmed at circa £100m, focused on capacity, capability, and automation.

• Continued investment in poultry and premium categories to drive future growth.