Anpario plc
(“Anpario”, “Group” or the “Company”)
Final Results
Anpario plc (AIM: ANP), the independent manufacturer of natural sustainable feed additives for animal health, nutrition and biosecurity is pleased to announce its full year results for the twelve months to 31 December 2023.
Financial highlights
– 6% decrease in revenue to £31.0m (2022: £33.1m).
– Improvement in gross margins to 45.0% (2022: 42.7%).
– 14% decrease in adjusted EBITDA1 to £4.5m (2022: £5.2m).
– 25% decrease in profit before tax to £2.8m (2022: £3.7m).
– Diluted adjusted earnings1 per share down 8% to 15.31p (2022: 16.67p).
– Basic earnings per share down 16% to 13.51p (2022: 16.13p).
– Increase of proposed final dividend to 7.50p (2022: 7.35p) per share, giving a total dividend for the year 10.7p (2022: 10.5p) per share.
– Cash generated from operations increased to £8.1m (2022: £1.8m).
– Cash and bank deposit balances2 of £10.6m at the year-end (2022: £13.6m).
Operational highlights
– Sales growth in Middle East, South America and United States was offset by decreases in other regions.
– Weighted average selling price increased due to a higher value-add product mix and raw material cost recovery, contributing to an improvement in gross margins.
– Strong sales growth of added value products Orego-Stim® and Optomega® Algae.
– Indian partnership agreement for local blending of Orego-Stim® to support sales growth.
– Grant of UK patent for our flagship toxin-binder product, Anpro®.
– One of 148 organisations nationally to be recognised with the first ever King’s Award for Enterprise, with Anpario being one of fifteen which received the award for Sustainable Development.
Outlook
– Strong start to trading in the current year.
– Increased volumes, cost reductions and efficiency improvements expected to be fully realised in profitability measures in 2024.
– The industry and certain regions will continue to face specific challenges.
– The Group’s position as a leader in natural and sustainable feed additive solutions combined with its geographic diversity and continued structural industry movement towards natural and sustainable feed additive solutions, gives the Board confidence in the long-term profitable development of the company.
Matthew Robinson, Chairman of the Company, commented:
2023 was a challenging year for the global agricultural industry and Anpario’s results reflect this. These challenges arose not only from energy, agricultural commodity and specific raw material prices, but also because many in the animal nutrition sector started 2023 with excessive stock levels, leading to de-stocking over the year.
The Group took some tough decisions during the period to reduce costs and improve margins in response to these challenges.
The final quarter of 2023 delivered a welcome improvement in sales volumes and gross margins that has continued into 2024, suggesting both that the global situation is improving and that management’s actions to improve margins are delivering results.
Cash generation from operations was strong at £8.1 million (2022: £1.8m) driven by working capital reductions following on from reduced supply chain and logistics risks.
Anpario’s balance sheet remains strong with year-end cash of £10.6m (2022: £13.6m), after returning in aggregate £10.8m to shareholders in the year by way of the Tender Offer and dividends (2022: £2.2m).
1 Adjusted EBITDA and adjusted earnings are defined in note 6 of the financial statements.
2 Cash and bank deposit balances include amounts shown as short-term investments in the statement of financial position, these are deposit accounts with notice periods of more than three but less than six months which can be accessed instantly at the penalty of lost interest, see note 20 of the financial statements.
Enquiries
| Anpario plc | |
| Richard Edwards, Chief Executive Officer | +44(0)7776 417 129 |
| Marc Wilson, Group Finance Director | +44(0)1909 537 380 |
| Shore Capital | |
| (Nominated Adviser and Broker) | +44 (0) 20 7408 4090 |
| Stephane Auton | Corporate Advisory |
| David Coaten | |
| Tom Knibbs | |
| Henry Willcocks | Corporate Broking |