Image source: © 2025 Krish Capital Pty. Ltd.

Highlights:

  • CWK revenue rises 9.7% YoY, driven by volume growth and new retail contracts.
  • CWK gains from Norfolk site’s China export reinstatement and Blakemans acquisition
  • CWK invests GBP 14 million in Pet Products expansion as debt increases post-refinancing

Cranswick plc (LSE: CWK), a UK-based food producer specialising in premium, fresh, and added-value products, released a trading update for the 13 weeks ending 28 June 2025. The company reported that revenue increased 9.7% year-on-year (YoY), with growth recorded across all product categories. The recently acquired Blakemans business contributed in line with expectations following its integration in May 2025. Cranswick's like-for-like revenue rose by 7.9% during the period, underpinned by volume gains linked to new business wins and enhanced cooperation with key strategic retail partners. The company also noted continued momentum in its premium protein ranges, reflecting demand among health-conscious consumers.

The reinstatement of the Norfolk fresh pork facility’s export license to China effective since December 2024 playing a significant role in supporting international revenue. The poultry division also saw elevated performance, largely due to increased orders from a core retail client at the Eye site and the onboarding of new premium retail contracts at the Cooked and Prepared Poultry sites. Cranswick’s Pet Products division experienced a notable increase in revenue, driven by the rollout of supply to Pets at Home. The company confirmed it has now secured new premium own-label business with the pet retailer, with supply scheduled to commence later in the year.

Cranswick is accelerating capital expenditure across its production facilities and farming operations. The company said it is making progress on multiple earnings-enhancing capital projects and confirmed an additional GBP 14 million investment into the Lincoln Pet Products site. This allocation is aimed at boosting capacity and widening the product offering. This investment activity is part of a broader strategy to enhance efficiency, support capacity growth, and align production with evolving customer needs. Cranswick currently operates 23 production facilities across the UK and maintains integrated pig and poultry farming operations.

Net debt increased in the quarter due to cash used for the Blakemans acquisition, capex outflows, and seasonal working capital demands. These were partly offset by positive free cash flow generation. In parallel, Cranswick refinanced its banking arrangements during the period, replacing its existing £250 million revolving credit facility with a new GBP 360 million facility on improved terms. The new agreement, which is unsecured and runs until July 2029, includes an option to extend by two years and provides additional headroom of £90 million, available on the same terms.

Cranswick stated that trading performance in Q1FY26 remains aligned with current market expectations. The integration of Blakemans is proceeding in line with internal benchmarks, and the company reiterated its commitment to ongoing investment in infrastructure, operational improvements, and supply chain development.

The company also confirmed that it has made progress in improving animal welfare compliance practices. An external veterinarian-led review of policies and procedures is underway, and an update will be provided in due course. Cranswick’s interim results for the 26 weeks ending 27 September 2025 are scheduled for release on 25 November 2025.

CWK trading at 1.50% higher at GBX 5,400.00 per share as on 28 July 2025.