Cranswick H2 Earnings Call Highlights

MarketBeat

Tue, May 19, 2026 at 11:05 AM EDT 7 min read

Key Points

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• Cranswick delivered solid fiscal 2026 growth, with revenue up 9.5% to £2.98 billion and adjusted operating profit rising 14.5% to £237 million. Margins improved to 7.9%, and adjusted EPS increased 10.4% as strong volume growth and festive trading boosted results.

• The company continued its long dividend streak, proposing a full-year dividend of £1.125 per share, up 11.4%, which marks 36 straight years of annual dividend growth. Free cash flow also rose 25.7% to £268.4 million, while net debt remained low relative to EBITDA.

• Cranswick is investing heavily to expand capacity and support future growth, including major projects in pork, poultry, and supply-chain assets, plus a new £56 million poultry expansion in Eye. Management said recent acquisitions are outperforming expectations and early trading in the new year is in line with forecasts.

Cranswick (LON:CWK) reported what management described as a strong year of strategic and financial progress for fiscal 2026, with volume-led revenue growth, higher margins and another increase in its dividend.

The U.K. food producer said revenue rose 9.5% to £2.98 billion, supported by 8.3% growth in U.K. food volumes, new business wins and a record Christmas trading period. Adjusted operating profit increased 14.5% to £237 million, while adjusted profit before tax rose 11.2% to £220 million. Adjusted earnings per share increased 10.4% to £3.017.

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Mark Bottomley, chief financial officer, said 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. Return on capital employed was maintained at 18.5% for the third consecutive year, despite a significant increase in average capital employed over that period.

Dividend Growth Extends to 36 Years

Cranswick proposed a final dividend of £0.855 per share, up 12.5%. Together with an interim dividend of £0.27 per share, the full-year dividend would total £1.125 per share, an 11.4% increase from the prior year.

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Management said the increase extends Cranswick’s record of consecutive annual dividend growth to 36 years. Bottomley said dividend cover was 2.7 times in fiscal 2026, above the company’s target of at least 2.5 times.

Cash generation remained a central theme of the presentation. Bottomley said free cash flow increased 25.7% to £268.4 million. Net debt excluding lease liabilities rose by only £25.3 million despite record capital expenditures of £163.4 million and £32.1 million deployed on mergers and acquisitions.