Key Takeaways:
Shares in Cranswick (LON:CWK) jumped more than 5% on Tuesday after the UK food producer reported a strong rise in full-year revenue and profit, leading the company to increase its dividend for the 36th consecutive year.
"The company’s adjusted operating margin improved to 7.9%, up 35 basis points year over year and 'well ahead' of its medium-term target," Mark Bottomley, chief financial officer at Cranswick, said. "Return on capital employed was maintained at 18.5% for the third consecutive year."
For the fiscal year ended March 28, 2026, the meat supplier reported adjusted pretax profit of £220 million, beating the company-compiled analyst consensus of £216.2 million. Revenue rose 9.5% to £2.98 billion, driven by an 8.3% growth in UK food volumes, new business wins with partners like Sainsbury's and Morrisons, and record Christmas sales. The company proposed a final dividend of £0.855 per share, bringing the full-year payout to £1.125, an 11.4% increase from the prior year.
Looking ahead, Cranswick said early trading in the new financial year is in line with its forecasts, supported by robust demand and the outperformance of recent acquisitions. However, the company warned of potential supply chain disruptions and rising energy costs linked to the war in Iran. Peer Hilton Food (LON:HFG) echoed similar concerns over inflationary pressures from the conflict.
Cranswick's diverse portfolio showed broad strength. Poultry revenue climbed 13.9%, gourmet products rose 15.3%, and pet products saw a 29.8% increase, aided by an expanded partnership with Pets at Home. The company is investing a record £163 million in its facilities, including a new £56 million expansion at its Eye poultry facility, which is expected to double its capacity by 2027.
This article is for informational purposes only and does not constitute investment advice.
