DAVY VIEW

Cranswick’s FY21 results confirm a strong out-turn in the context of the retail channel shift and return on strategic investments. Revenue growth, operating margin and cash flow were ahead of our forecasts. Robust domestic trading evidenced prioritisation of domestic retail customers, with the export channel picking up strongly through Q4 on the resurgence of African Swine Fever in China. Management notes a “particularly positive start” to the year. We will increase our FY22 operating profit forecast by c.6%. We expect the statement to catalyse the equity (flat LTM despite +27% earnings growth), and we reiterate our ‘Outperform’ rating.