Cranswick (CWK) H2 2025 earnings summary

Executive summary

• Achieved 35th consecutive year of dividend growth, with dividend per share up 12.2% to 101.0p, reflecting a robust and sustainable business model.

• Revenue grew 6.8% year-over-year to £2,723.3m, with like-for-like revenue up 6.4% and volume growth of 7.7%.

• Record capital expenditure of £138m supported capacity expansion and efficiency projects, alongside two strategic acquisitions: JSR Genetics (£24m) and Blakemans (£32m).

• Maintained low leverage and strong cash generation, supporting ongoing investment and shareholder returns.

• Adjusted operating margin increased 48bps to 7.6%, and adjusted profit before tax rose 14.3% to £197.9m.

Financial highlights

• Adjusted operating profit rose 14% to £206.9m; adjusted EPS up 15.6% to 273.4p.

• Free cash flow was £213.6m, with free cash conversion at 101.6%.

• Net debt (excluding IFRS 16) was £39.7m; leverage remained low at 0.1x (post IFRS 16: 0.6x).

• ROCE at 18.5%, up 7bps year-over-year and above the upper teens target.

• Dividend cover was 2.7x, supporting a progressive dividend policy.

Outlook and guidance

• FY2026 revenue growth expected at ~7%, with adjusted operating margin around 7.5%.

• CapEx investment to accelerate to ~50% of EBITDA; finance costs forecast at £12m, tax rate at 26.3%.

• Positive start to the new financial year, with strong demand momentum continuing, especially for pork and poultry.