REG - Cranswick PLC - CMD and upgraded medium term targets

CranswickAnnouncement

20/03/2025 07:00

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RNS Number : 3755B  Cranswick PLC  20 March 2025

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 growth(1)

·     ~7.5% adjusted operating margin(2), increased from >6%

·     Mid single digit adjusted EPS growth(2) maintained

·     Upper teens ROCE(3), increased from mid-teens

·     <2x Leverage(4) maintained

·     90% free cash conversion(5) 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 expectations(6). 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."

 

 

 (1)    Excludes the impact of M&A.

 (2)    Excludes IAS 41 movement on biological assets, acquisition related

      amortisation and impairment of intangible assets.
 (3)

      Adjusted operating profit divided by the sum of average opening and closing
 ( )    net assets, net debt, pension surplus and deferred tax.

 (4)    Net debt (including IFRS 16) divided by adjusted EBITDA.

 (5)    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.

 (6)    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:

 Cranswick plc                                01482 275 000
 Mark Bottomley, Chief Financial Officer

 Sodali & Co                                  +44 207 100 6451
 Ben Foster / Louisa Henry / Flora Mackenzie  cranswick@sodali.com (mailto:cranswick@sodali.com)

 

 

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 (http://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
(http://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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