Cranswick plc

Greater-than-expected ASF tailwind drives material profit upgrade

  • Sectors : Foods
  • Companies : Cranswick plc

Ratings and price correct at time of issue.

  • Cranswick plc

    Closing Price: 3574p

  • RATING 09/11/16

  • PREVIOUS RATING N/A

DAVY VIEW

The proximity of Friday’s (January 17th) release to last February’s profit warning highlights the depth of the African Swine Fever (ASF) crisis in the Far East – which Cranswick has capitalised on. Fundamentally, the Chinese supply shortfall is incapable of being bridged by domestic producers over the short term. Determining the magnitude and sustainability of the ASF opportunity is hard to gauge – our view is that a further 12 months of profit capture still exists. Allied with strong domestic trading over the Christmas period, we upgrade our FY 2020 and FY 2021 operating profit forecasts by c.10% and c.3% respectively.

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Jan 21 2020, 07:15 GMT

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