Slide 1: Interim Results for the 26 weeks ended 28 September 2024
I N T E R I M R E S U LT S FOR THE 26 WEEKS ENDED 2 8 S E P T E M B E R 2 0 2 4
Slide 2: Agenda
AG E N DA IN TROD U C TI ON & H1 F Y 2 5 H IG H L IG H TS ADAM COU C H, CEO F I N AN C I AL R EV IEW MAR K BOT TOML EY , CFO COMME RC I AL U P DAT E JI M BR I SBY, CCO OP E RATI N G & STRAT EG IC R EV IEW ADAM COU C H, CEO Q&A DISCLAIMER: Certain statements in this presentation are forward looking s
Slide 3: H1 FY25 Highlights
H1 FY25 HIGHLIGHTS A DA M C O U C H CHIEF EXECUTIVE OFFICER 3
Slide 4: Commercial and Strategic Highlights
H1 FY25 HIGHLIGHTS C O M M E R C I A L A N D S T R AT E G I C H I G H L I G H T S 10 YEAR CAGR Compound annual growth rates to 30 March 2024 • Strong volume-led revenue growth of 6.1% REVENUE • Poultry revenue up by 16.4% with Poultry now accounting for 19.5% +10.1% of total Group sales ADJUSTED PRO
Slide 5: Financial Performance
H1 FY25 HIGHLIGHTS FINANCIAL PERFORMANCE REVENUE ADJUSTED OPERATING PROFIT 2 ADJUSTED OPERATING MARGIN 2 ADJUSTED EPS GROWTH 2 +6.1 % +1 6. 5 % 7. 5% +17.7 % Like-for-like1: +5.8% Target: Mid single digit H1 FY25: £99.6m Target: >6% Target: Mid single digit FREE CASH CONVERSION 3 ROCE 4 LEVERAGE 5 D
Slide 6: People and Culture
H1 FY25 HIGHLIGHTS P E O P L E A N D C U LT U R E Over CULTURE OF 15,000 EMPOWERMENT colleagues with a highly skilled workforce yielding strong results Highly successful RECRUITMENT PROGRAMME FOCUS ON incorporating engaging PEOPLE graduate and apprenticeship DEVELOPMENT schemes leading to improved w
Slide 7: Financial Review
FINANCIAL REVIEW M A R K B OT TO M L EY CHIEF FINANCIAL OFFICER 7
Slide 8: Financial Highlights
FINANCIAL REVIEW FINANCIAL HIGHLIGHTS REVENUE (£M) +6.1% ADJUSTED PROFIT BEFORE TAX (£M)1 +17.4% H1 FY25 1,329.9 H1 FY25 95.8 H1 FY24 1,253.7 H1 FY24 81.6 H1 FY23 1,116.3 H1 FY23 66.0 ADJUSTED EARNINGS PER SHARE (P)1 +17.7% DIVIDEND PER SHARE (P) +10.1% H1 FY25 132.1 H1 FY25 25.0 H1 FY24 112.2 H1
Slide 9: H1 FY25 Summary
FINANCIAL REVIEW H1 FY25 SUMMARY £M H1 FY25 H1 FY24 CHANGE Revenue 1,329.9 1,253.7 +6.1% Like-for-like revenue growth1 +5.8% Adjusted gross margin2 15.3% 14.1% +121bps Adjusted operating profit2 99.6 85.5 +16.5% Adjusted operating margin2 7.5% 6.8% +67bps Adjusted profit before tax2 95.8 81.6 +17.4%
Slide 10: Volume-Led Revenue Growth
FINANCIAL REVIEW VO L U M E - L E D R E V E N U E G R O W T H REVENUE BRIDGE (£M) 70.2 4.1 Revenue growth is driven by: 17.4 (15.5) • Robust volume growth of 7.3% well ahead of underlying market growth • Strong momentum from business wins • Premium category performance supported by promotional activ
Slide 11: Positive Margin Progression
FINANCIAL REVIEW POSITIVE MARGIN PROGRESSION ADJUSTED GROSS MARGIN1 ADJUSTED EBITDA MARGIN1,2 ADJUSTED OPERATING MARGIN1,2 15.3% 14.7% 10.7% 14.1% 10.3% 13.1% 12.9% 9.8% 9.2% 9.4% 7.5% 6.8% 7.0% 6.5% 6.1% H1 FY23 H2 FY23 H1 FY24 H2 FY24 H1 FY25 H1 FY23 H2 FY23 H1 FY24 H2 FY24 H1 FY25 H1 FY23 H2 FY23
Slide 12: Strong Free Cash Flow
FINANCIAL REVIEW ST R O N G F R E E CA S H F LOW NET DEBT (£M) 142.4 (18.7) (21.8) (46.7) (99.4) (107.5) (36.1) (4.4) (10.4) (5.1) (7.3) March Adjusted Working Taxation Net capex Dividends Acquisitions EBT share Other Leases3 September 2024 EBITDA1 capital2 and interest purchases 2024 Net debt exclu
Slide 13: Sustainable Long-Term Cash Generation
FINANCIAL REVIEW S U S TA I N A B L E L O N G -T E R M C A S H G E N E R AT I O N FREE CASH CASH INFLOW / £M NET CAPEX ACQUISITION1 DIVIDEND PAID B A N K I N G FAC I L I T Y FLOW (OUTFLOW) 2 H1 FY25 105.4 46.7 4.4 36.1 18.2 FY24 223.4 90.6 39.2 43.9 49.7 • £250m revolving credit facility in place wi
Slide 14: Strategic Investment Continues
FINANCIAL REVIEW S T R AT E G I C I N V E S T M E N T C O N T I N U E S H1 CA PAC IT Y EN HAN CEM EN T FY 2 5 CA P EX DEL I V ERY £8m £8m 18.7% c.£100m Expansion of New Worsley Fresh Pork Hull houmous facility H1 FY25 ROCE 1 FY25 CAPEX GUIDANCE £62m project £25m project £4m Expansion of both added-v
Slide 15: Commercial Update
C O M M E R C I A L U P DAT E J I M B R I S BY CHIEF COMMERCIAL OFFICER 15
Slide 16: Strong Fresh & Chilled Category Performance in Retail
C O M M E R C I A L U P DAT E STRONG F RE SH & C HI LLE D CATEGO RY P ER FO R M A N C E IN R ETA IL F R E S H & C H I L L E D S A L E S B Y R E TA I L E R SALES GROWTH ACROSS KEY RETAIL CUSTOMERS 7,000 24 w/e 01 Oct 23 24 w/e 29 Sept 24 • Total market growth at +4.1% and 6,000 momentum continues 5,0
Slide 17: Falling Commodity Prices but Labour and NI Headwinds
C O M M E R C I A L U P DAT E FA LLI NG COMMOD I T Y P R I C E S BUT L A BO U R A N D N I H EA DWIN DS F E E D I N P U T P R I C E S 2 0 19 - 2 0 2 4 600 • Feed costs continue to fall Feed Wheat Soyabean Meal 550 500 • UK pig price remains stable; Cranswick investment in farming 450 reduces supply v
Slide 18: Strong Category Sales
C O M M E R C I A L U P DAT E S T R O N G C AT E G O R Y S A L E S G RO U P SA LE S H1 F Y2 5 C R A N SW I C K R EV E N U E BY C H A N N E L H 1 F Y 2 5 Change Category Volume Value 78% UK Retail Fresh Pork1 +10.9% +3.5% +9% Convenience -1.6% +1.1% Gourmet Products +7.0% +8.7% Manufacturing -6% 13%
Slide 19: Commercial Outlook
C O M M E R C I A L U P DAT E CO M M E R C I A L O U T LO O K R E S I LI E NT D E M A N D CO M M E RC IA L P E R FO R M A N C E M A R K ET S H A R E GA I N S • Solid performance in retail business • Labour and National Insurance • Ramona’s brand performance cost increases to be managed • Volume grow
Slide 20: Operating & Strategic Review
O P E R AT I N G & S T R AT E G I C R E V I E W A DA M C O U C H CHIEF EXECUTIVE OFFICER 20
Slide 21: End to End Poultry Expansion
O P E R AT I N G & S T R AT E G I C R E V I E W E N D T O E N D P O U LT R Y E X PA N S I O N £7m Kenninghall expansion (commencing H2) • Increases incubatory self-sufficiency from 50% to 100% • Adds additional capacity to support further expansion at Eye • Reduces reliance on third-party suppliers
Slide 22: Margin Progression Through Farming
O P E R AT I N G & S T R AT E G I C R E V I E W M A R G I N P R O G R E S S I O N T H R O U G H FA R M I N G Vertical integration from feed milling to breeding to finishing across a network of c.400 farms, with a herd of c.900,000 pigs Further acquisition of RSPCA Assured outdoor bred pigs completed
Slide 23: Summary & Outlook
O P E R AT I N G & S T R AT E G I C R E V I E W S U M M A RY & O U T LO O K STRO N G P E R FO R M A N C E O N G O I N G I N V E STM E NT P O S ITIV E O UTLOO K • Strong volume-led revenue growth • £62m investment in Hull Fresh • A ttractive pipeline of new business Pork site • Strengthening margins
Slide 24: Our Long-Term Trading Record
APPENDIX X 1 O U R L O N G -T E R M T R A D I N G R E C O R D ADJUSTED PROFIT BEFORE TAX 1 (£M) DIVIDEND PER SHARE (PENCE) £2,599m 90.0 176.6 Revenue 34 years of unbroken dividend growth £2,323m 75.6 136.9 60.4 £1,667m 53.7 102.3 90.2 37.5 £1,005m 64.4 32.0 28.5 £740m 52.2 25.0 43.8 45.6 19.9 33.0 1
Slide 25: A Sustainable Capital Allocation Framework
APPENDIX X 2 A S U S TA I N A B L E C A P I TA L A L L O C AT I O N F R A M E W O R K I N V E ST I N G I N T H E B U S I N E S S TO C A P E X O F C . £ 1 0 0 M T O A D D C A PAC I T Y, S U P P O R T O U R G R O W T H S T R AT E GY C A PA B I L I T Y A N D A U T O M AT I O N M A I N TA I N I N V E S
Slide 26: Our Growth History
3 APPENDIX X O U R G R OW T H H I STO RY Simply Sausage - Gourmet Sausage Sold Cranswick Pet Products Froch Foods 26 weeks ended 28 September 2024 26
Slide 27: A Broad Product Portfolio
APPENDIX 4 A B R OA D P R O D U C T P O R T F O L I O FRESH PORK G O U R M ET SAU SAG E G O U R M ET BACO N S LOW CO O K CO O K E D M E AT S FRESH CHICKEN R E A DY-TO - E AT COAT E D C H I C K E N G O U R M ET PA STRY C H A R C U TE R I E CHICKEN S P EC I A LIT Y O LI V E S & A N TI PA STI A M B I E
Slide 28: Market Share Opportunities
APPENDIX 5 MARKET SHARE OPPORTUNITIES Cranswick share of retail category sales MEDITERRANEAN PET PIG MEAT POULTRY FOODS FOOD Cranswick Other Retail Sales Value Cooked Pastry Premium Bacon Premium Fresh Sausage Slow Fresh RTE Coated Charcuterie Houmous Olives & Dry dog meats pastry bacon pork cook ch
Slide 29: Our Locations
APPENDIX 6 O U R L O C AT I O N S O UR SITE S Ballymena HULL BURY Fresh Pork, Preston Continental Foods We have sites across Fresh Pork, Riverside the UK and our primary Gourmet Sausage WORSLEY Malton processing facilities are Cooked Poultry Mediterranean Foods well placed within key Cooked Meats Sh
Slide 30: Adjusted & Reported Earnings, Tax & Earnings per Share
7 APPENDIX X ADJUST ED & R E P ORTE D E AR N I N GS , TA X & EA R N IN G S P ER SH A R E ADJUSTED & REPORTED EARNINGS (£M) H1 FY25 H1 FY24 TAX (%) H1 FY25 H1 FY24 Adjusted operating profit 99.6 85.5 Headline tax rate 25.0 25.0 Net IAS 41 movement (3.4) 7.7 Disallowed expenses and non-qualifying depr
Slide 31: Balance Sheet and Cash Flow
8 APPENDIX X BA L A N C E S H E E T A N D CA S H F LOW BALANCE SHEET (£M) H1 FY25 H1 FY24 STATUTORY CASH FLOW (£M) H1 FY25 H1 FY24 Property, plant and equipment 533.8 496.7 Cash generated from operations 127.2 103.2 Intangible assets 211.9 224.1 Tax paid (20.6) (22.9) Right-of-use assets 99.0 85.0 N
Slide 32: Free Cash Flow
9 APPENDIX X F R E E CA S H F LOW FREE CASH FLOW (£M) H1 FY25 H1 FY24 Net cash from operating activities 106.6 80.3 Net interest paid (1.2) (2.0) Free cash flow 105.4 78.3 FREE CASH CONVERSION (£M) H1 FY25 H1 FY24 Free cash flow 105.4 78.3 Non-growth capital expenditure (13.2) (10.9) Net IAS 41 valu