20th Mar 2025 09:21
(Alliance News) - Cranswick PLC on Thursday lifted its medium-term margin aim, as demand for pork and poultry products continues to be strong.
Cranswick shares rose 2.0% to 4,989.05 pence each in London on Thursday morning.
The Yorkshire, England-based food producer set an adjusted operating margin target of around 7.5%, the outlook increased from over 6%.
The medium-term outlook, given ahead of a capital markets day, also set out the aim for mid-single digit organic revenue growth. Its target of mid-single digit adjusted earnings per share growth was maintained.
Cranswick upped its return on capital employed aim to the "upper teens" from the "mid-teens". The return on capital employed in the year that ended March 2024 was 18.5%, rising from 15.8%.
It achieved an adjusted EPS of 242.8p in financial 2024, rising 16% from 210.0p and an adjusted operating margin of 7.1%, up from 6.3%.
"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," the company said.
It puts market expectations for adjusted pretax profit between GBP190.0 million and GBP195.1 million, an improvement of up to 10% from GBP176.6 million.
Chief Executive Officer Adam Couch said: "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."
It will release annual results on May 20.
By Eric Cunha, Alliance News news editor
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