The timing of the Covid-19 outbreak means that Cranswick’s (CWK) numbers for the year to March weren’t significantly affected by the pandemic, and food demand hasn't exactly waned in the intervening months. It follows that the group’s outlook for 2021 remains unchanged; and in a further show of confidence, Cranswick hiked the dividend by 8 per cent – marking three decades of consecutive increases.
For the period under review, the group spent £69.4m on acquisitions such as that of Packington Pork and Mediterranean food supplier Katsouris Brothers – bolstering its self-sufficiency in pigs, while diversifying into non-meat products. The group also made a record £101m investment into its asset base, including the commissioning of a new poultry facility in Eye, Suffolk.
In turn, production at the Eye site helped to underpin strong revenue growth, which also benefited from a 122 per cent escalation in Far East export revenues. The African Swine Fever outbreak in China has wiped out the country’s pig herd population by almost a half, while dramatically amplifying the pig price.
House broker Investec expects adjusted EPS of 162p for FY2021, up from 156p in FY2020.
| CRANSWICK (CWK) | ||||
| ORD PRICE: | 3,700p | MARKET VALUE: | £ 1.95bn | |
| TOUCH: | 3,690-3,700p | 12-MONTH HIGH: | 4,000p | LOW: 2,488p |
| DIVIDEND YIELD: | 1.6% | PE RATIO: | 23 | |
| NET ASSET VALUE: | 1,168p* | NET DEBT: | 24%** | |
| Year to 28 Mar | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 | 1.02 | 62.1 | 92.0 | 37.5 |
| 2017 | 1.25 | 77.5 | 124 | 44.1 |
| 2018 | 1.46 | 88.0 | 138 | 53.7 |
| 2019 | 1.44 | 86.5 | 136 | 55.9 |
| 2020 | 1.67 | 104 | 159 | 60.4 |
| % change | +16 | +20 | +17 | +8 |
| Ex-div: | 23 Jul | |||
| Payment: | 04 Sep | |||
*Includes intangible assets of £207m, or 394p a share **Includes lease liabilities of £65.9m | ||||
