Cranswick FY25 presentation slides: Revenue up 6.8%, profit surges 14.3% amid record investment

Introduction & Market Context

Cranswick PLC (LSE:LON:CWK), a leading UK food producer specializing in fresh pork, poultry, and convenience food products, presented its full-year results for the 52 weeks ended March 29, 2025, on May 20, 2025. The company’s shares responded positively to the results, rising 3.04% to £52.60 on the day of the presentation.

The results demonstrate Cranswick’s continued ability to deliver growth despite a challenging consumer environment, with the company highlighting its focus on premium products and strategic investments as key drivers of performance.

Executive Summary

Cranswick reported strong financial results for FY25, with revenue growing 6.8% to £2,723.3 million and adjusted profit before tax increasing 14.3% to £197.9 million compared to the previous year on a 52-week basis. Volume growth of 7.7% was particularly impressive, driven by the company’s premium product range and a record Christmas trading period.

As shown in the following chart of the company’s long-term performance, Cranswick has maintained an impressive growth trajectory over 35 years:

The company highlighted several commercial and strategic achievements, including secured and expanded long-term supply agreements with retail partners, continued investment in pig farming operations, and significant progress on major capital projects. Cranswick also completed two strategic acquisitions: JSR Genetics, a leading UK-based pig genetics producer (£24 million), and Blakemans, a leading food service sausage manufacturer (£32 million).

The comprehensive overview of commercial and strategic highlights demonstrates the company’s balanced approach to growth:

Detailed Financial Analysis

Cranswick’s financial performance showed improvement across multiple metrics. Adjusted operating margin increased by 48 basis points to 7.6%, while adjusted earnings per share rose 15.6% to 273.4 pence. The company maintained its 35-year track record of dividend growth, increasing the dividend per share by 12.2% to 101.0 pence.

The following financial highlights table provides a clear comparison with previous years:

Revenue growth was broad-based across product categories, with particularly strong performance in Poultry (+20.3%) and Gourmet Products (+8.8%). The company’s core Fresh Pork category, which remains a significant portion of the business, grew by 4.0%.

The revenue bridge below illustrates the contributions from different product categories:

Margin progression has been consistent over the past three years, with adjusted gross margin improving from 13.0% in FY23 to 15.4% in FY25. This improvement reflects the company’s investment in operational efficiency and focus on premium products.

As shown in the following chart of margin progression:

Cranswick maintained strong cash generation with free cash flow of £213.6 million and a free cash conversion rate of 101.6%. Net debt excluding lease liabilities increased to £39.7 million (from £0.1 million in FY24), reflecting the company’s significant investment program and acquisitions. Leverage remains low at 0.1x (0.6x including IFRS 16 lease liabilities).

Strategic Initiatives & Investments

Cranswick made record capital investments of £138 million in FY25 (up from £91 million in FY24), focusing on expanding capacity and improving efficiency across its operations. Major projects included a £62 million expansion at the Fresh Pork Hull facility, £29 million for capacity increases across added-value poultry, and £25 million investment in the Worsley houmous facility.

The company’s detailed breakdown of capital investments demonstrates its commitment to long-term growth:

Cranswick’s growth strategy is built around three pillars: consolidate existing market positions, expand into adjacent categories, and diversify into new protein sectors. This approach has delivered impressive compound annual growth rates over the past decade: revenue +10.5%, adjusted profit before tax +13.1%, and adjusted earnings per share +11.5%.

The company’s value creation framework clearly outlines its strategic priorities:

Forward-Looking Statements

Looking ahead to FY26, Cranswick provided guidance for continued strong performance with revenue growth of approximately 7% and an adjusted operating margin of around 7.5%. The company expects finance costs of approximately £12 million, an effective tax rate of around 26.3%, and capital expenditure of approximately 50% of EBITDA.

Management expressed confidence in the company’s growth strategy, highlighting ongoing investments including £97 million in the Hull Fresh Pork site, £49 million across fresh and added-value poultry, and £25 million in expanding houmous and dips capacity.

The company’s key growth drivers are summarized in the following slide:

Cranswick’s commercial outlook focuses on securing pig meat supply, expanding chicken and continental products, and developing new markets. The company continues to see strong demand across its product categories, with consumers maintaining meat consumption as part of a healthy diet and growth in premium tiers.

The volume-led category growth across Cranswick’s portfolio demonstrates the success of its diversification strategy:

With a robust balance sheet, strong cash generation, and clear strategic direction, Cranswick appears well-positioned to continue its impressive growth trajectory in the coming years, building on its 35-year history of delivering compound growth and shareholder returns.

Full presentation:

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