Anpario plc
(“Anpario” or the “Group”)
Interim results
Anpario plc (AIM:ANP), the independent manufacturer of natural sustainable animal feed additives for animal health, nutrition and biosecurity is pleased to announce its interim results for the six months to 30 June 2022.
Highlights
Financial highlights
– 3% increase in sales to £16.5m (2021: £16.0m)
– 10% decrease in adjusted EBITDA1 to £3.0m (2021: £3.3m)
– Gross margins down to 42% (2021: 50%)
– 17% increase in profit after tax to £2.1m (2021: £1.8m)
– Diluted adjusted earnings per share down 3% to 9.81p (2021: 10.11p)
– 5% increase in interim dividend to 3.15p (2021: 3.00p) per share
– Cash balances of £13.3m at 30 June 2022 (Dec 2021: £15.5m)
Operational highlights
– Sales growth in Asia Pacific, Latin America, Middle East & Africa (MEA) and the United States
– Implementation of sales price increases helped reduce impact of raw material price inflation
– Strong demand for our natural pellet binder Mastercube® for aquaculture
– Our unique acid-based eubiotic brand pHorce® delivered further growth in the US swine sector as the leading anti-viral feed mitigant
– Investment in additional raw material storage at our Manton Wood production facility completed
– New solar panel installation has reduced our electricity purchases by 32%
Kate Allum, Chairman, commented:
“The Board is pleased to report a satisfactory performance given the challenges experienced in the first half of the year. Sales growth was 3% ahead of the prior year period, however adjusted EBITDA1 declined by 10%, albeit after legal and professional costs in relation to specific acquisition opportunities. The decline in our gross margin is due to the significant and immediate increase in raw material and logistics costs experienced during the period which have been partially mitigated through sales price increases but with an inevitable lag. Our margins, however, have improved in recent months as a result of our actions.
Customers have also been impacted by input cost pressures, notably feed and energy, which is hurting their profitability and in some cases viability. We have, therefore, experienced reduced volumes with these customers in addition to lower volumes in China because of covid lockdowns, and in Russia and Belarus following our decision to cease trading with these countries. The geographic and product diversity of the business has served us well during this period and the investment in raw material storage and finished product stocks around the world has ensured we continue to respond to customer demand.
Our strategy of offering sustainable and environmentally friendly products is helping customers to transition away from anti-biotic growth promoters and some of the harsher chemical treatments used in agriculture. Our research and development are similarly focused on bringing new products to market such as the recent launch of our 100% natural and sustainably sourced omega 3 supplement brand Optomega® Algae.
This performance would not have been possible without the efforts of our staff and other stakeholders across the globe who have maintained composure and continue to focus on implementing our business development initiatives. Cost price inflation appears to have stabilised, although we are mindful that many of our suppliers are dependent on European energy markets and logistics routes are still subject to sporadic disruption.
Maintaining profitability at the same level of last year is going to be challenging in the context of the current macroeconomic and geopolitical headwinds. The second half has started at a similar level as the first but with improved gross margins. However, full-year performance will be determined by trading conditions and events throughout the remainder of the year. The Group is supported by a strong balance sheet and further investment in our global sales channels will help deliver future organic growth.”