Cranswick

Website: Cranswick
Index: FTSE 250
EPIC: CWK
Supersector: Food, Beverage and Tobacco
Sector: Food Producers
Subsector: Food Products
Market Cap: £2.95B
Payout Frequency: Semi-Annual

Cranswick Dividend Analysis and Summary

Declared Dividend

Final dividend: 85.5p per share (+12.5% YoY)
Interim dividend: 27.0p per share
Total FY26 dividend: 112.5p per share (+11.4% YoY), marking the 36th consecutive year of growth

Key Dates

Coverage and Cash Flow Support

Dividend cover (adjusted EPS): c. 2.7x (301.7p EPS / 112.5p DPS)
Payout ratio (adjusted): c. 37%
Free cash flow (FCF): £268.4m; FCF conversion 120.6%
Dividends paid in year (cash): £55.1m (covered ~4.9x by FCF)
Leverage: Net debt ex-IFRS 16 £65.0m; Net debt/Adj EBITDA 0.2x; ample RCF headroom (>£290m)

Growth and Policy

Board proposes another double-digit increase, consistent with a progressive dividend approach.
Earnings tailwinds: adjusted EPS up 10.4%, operating margin +35bps to 7.9%.
Track record: revenue, adjusted profit, EPS and dividends have averaged >10% p.a. growth over 10 years.

Financial and Capital Allocation Backdrop

Operational performance: Revenue +9.5% to £2,982.5m; Adj PBT +11.2% to £220.0m.
Capital investment: record £163m this year; guidance to invest ~50% of adjusted EBITDA going forward.
Funding: refinanced with a £360m unsecured RCF to July 2029 on improved terms.
ROCE: sustained at a strong 18.5% despite record investment.

Structural/Strategic Developments Relevant to Dividends

Acquisitions: Blakemans (sausages) and JSR Genetics performing ahead of expectations; modest contingent consideration outstanding (£3.7m).
Capacity expansions: major projects across pork and poultry, including a further £56m to expand Eye poultry facility (+25% capacity by summer 2027) and longer-term study for a second poultry facility.
Supply security: extended long-term poultry supply agreement with a strategic retail partner.
No demergers, share consolidations or policy changes disclosed; share purchases were for the Employee Benefit Trust rather than buybacks for cancellation.

Risks/Flags to Dividend Stability

Livestock disease exposure: African Swine Fever, Avian Influenza, and emerging Newcastle Disease remain key risks.
Cost and supply chain: availability/cost of supplies and energy/geopolitical risks could pressure margins and working capital.
Customer concentration: reliance on key retail partners, albeit mitigated by extended contracts and diversified categories.
Capex intensity: sustained high investment and rising finance costs (net finance costs £17.0m vs £9.2m) could absorb cash in a downturn, though current leverage and headroom are strong.
IT/cyber risk highlighted following sector incidents; ongoing mitigation investment continues.

Bottom Line

The proposed 85.5p final dividend (total 112.5p) is well supported by earnings, cash generation, and a conservative balance sheet. With strong ROCE, disciplined capital allocation, and strategic capacity growth, dividend sustainability appears strong, with scope for continued high single- to low double-digit growth barring adverse disease or macro shocks.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
11/12/2025	23/01/2026	Interim	27.0000p	GBX
16/07/2026	28/08/2026	Final	85.5000p	GBX

Total (Annual Dividends Per Share): 112.50p

Dividend Yield = Annual Dividends Per Share (112.50p) ÷ Share Price (5350p) = 2.1%

Ex Dividend Date	Payment Date	Type	Amount	Currency
16/07/2026	28/08/2026	Final	85.5000p	GBX
11/12/2025	23/01/2026	Interim	27.0000p	GBX
17/07/2025	29/08/2025	Final	76.00p	GBX
12/12/2024	24/01/2025	Interim	25.00p	GBX
18/07/2024	30/08/2024	Final	67.30p	GBX
14/12/2023	26/01/2024	Interim	22.70p	GBX
20/07/2023	01/09/2023	Final	58.80p	GBX
15/12/2022	27/01/2023	Interim	20.60p	GBX
21/07/2022	02/09/2022	Final	55.60p	GBX
16/12/2021	28/01/2022	Interim	20.0p	GBX
22/07/2021	03/09/2021	Final	51.30p	GBX
17/12/2020	29/01/2021	Interim	18.70p	GBX
23/07/2020	04/09/2020	Final	43.70p	GBX
12/12/2019	24/01/2020	Interim	16.70p	GBX
18/07/2019	06/09/2019	Final	40.0p	GBX
06/12/2018	25/01/2019	Interim	15.90p	GBX
19/07/2018	07/09/2018	Final	38.60p	GBX
07/12/2017	26/01/2018	Interim	15.10p	GBX
29/06/2017	01/09/2017	Final	31.00p	GBX
08/12/2016	27/01/2017	Interim	13.10p	GBX
30/06/2016	02/09/2016	Final	25.90p	GBX
10/12/2015	29/01/2016	Interim	11.60p	GBX
02/07/2015	04/09/2015	Final	23.40p	GBX
04/12/2014	23/01/2015	Interim	10.60p	GBX
02/07/2014	05/09/2014	Final	22.00p	GBX
04/12/2013	24/01/2014	Interim	10.00p	GBX
03/07/2013	06/09/2013	Final	20.60p	GBX
05/12/2012	25/01/2013	Interim	9.40p	GBX

Year	Interim	Final	Currency	Total	Change
2024	25.000	67.300	GBX	92.300	13.250
2023	22.700	58.800	GBX	81.500	6.950
2022	20.600	55.600	GBX	76.200	6.870
2021	20.000	51.300	GBX	71.300	14.260
2020	18.700	43.700	GBX	62.400	10.050
2019	16.700	40.000	GBX	56.700	4.030
2018	15.900	38.600	GBX	54.500	18.220
2017	15.100	31.000	GBX	46.100	18.200
2016	13.100	25.900	GBX	39.000	11.420
2015	11.600	23.400	GBX	35.000	7.360
2014	10.600	22.000	GBX	32.600	6.530
2013	10.000	20.600	GBX	30.600	225.530
2012	9.400		GBX	9.400

Number of Shares:

Payment	Paid	Amount
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