The company demonstrates strong branded volume growth and international expansion indicating positive future revenue and earnings prospects. Capital employed has remained relatively flat while ROCE has risen 85% over the last five years, indicating improving operational efficiencies and profitable reinvestment opportunities.
Cyborg Score Rationale
For FY24/25, headline trading profit increased 6% to £187.8 million, beating analyst forecasts and showing strong operational performance. ROCE has risen 85% over five years while capital employed remained flat, demonstrating improving efficiencies. However, the ROCE of 9.8% remains below the 12% food industry average.
Top Insights
Net debt/EBITDA has fallen to 0.7x following a £92 million drop in net debt, significantly strengthening the company's leverage position.
The three-year median payout ratio to shareholders is 13%, indicating management is reinvesting 87% of income heavily to grow the business.
Share price hit a 15-year high after a substantial dividend raise, reflecting strong cash flow and commitment to increasing shareholder returns.
The company reported moderate 8.8% net income growth over the past five years.
Named Competitors
Packaged Foods & Beverages — Global food and beverage conglomerate
Packaged Foods & Beverages — Diversified consumer goods and food company
Ambient Grocery Products — Food ingredients and solutions provider