Food producer and processor Cranswick (CWK) beat expectations with its FY26 earnings and stuck to its FY27 forecasts. The firm is a leading producer of pork and poultry, servicing major UK grocery chains and the foodservice sector. It also has a pet food business, which is growing fast after its creation just four years ago.
Tasty results
For the year to March 2026, Cranswick posted a 9.5% increase in revenue to £2.98 billion, in line with the consensus. Adjusted operating profit rose 14.5% to £237 million, while pre-tax profit hit £220 million against the £160 million consensus.
Organic sales contributed 6.8% to the 9.5% increase in revenue, with the rest coming from acquisitions. UK food revenue rose 9.4% with 8.3% organic growth and the firm enjoyed record Christmas trading.
Poultry revenue grew around 14% and now represents 20% of group sales, while sales of gourmet products increased 15%. Specialist sausage-maker Blakemans, acquired in May 2025, helped drive gourmet sales.
Free cash conversion was 120% reflecting record cash generation of £322 million from operations. ROCE (return on capital employed) was 18.5%, and the firm said performance across all measures was ahead of its medium-term targets.
CEO Adam Crouch commented: ‘Cranswick has delivered another year of strong strategic and financial progress, reflecting our proven business model and the disciplined execution of our long-term priorities.’
It’s another sizzler from Cranswick, one of our favouite food stocks, which just keeps on beating estimates. Record cash generation and double digit growth across all metrics doesn’t just happen, the firm has worked hard to get here.
It hasn’t stopped investing, either – it’s spending £100 million on its flagship Hull pork processing site including a highly automated cold store facility. It’s also spending £30 million to expand its Hull poultry sites and its Worsley houmus facility.
Add to that successful acquisitions such as Blakemans, and diversification into pet food where sales grew 30% last year. As Shore Capital’s Darren Shirley says, it’s an excellent all-round performance which bodes well for the future.
The only niggle we have is the valuation, which is becoming an issue more frequently with quality growth companies these days. The shares have doubled in three years, but earnings – impressive as they are – haven’t been able to keep pace. That leaves the shares looking expensive and vulnerable to a correction, even if the next update is only mildly disappointing.
Read the press release here:
https://cranswick.plc.uk/investors
