Anpario full year profit up 18% on flat revenues

UK based feed additive manufacturer Anpario has reported increased in profitability on a slightly lower turnover from its latest full year of trading.

 

The Manton Wood, Nottinghamshire-based company made a pre-tax profit of £3.6 million on sales of £23.32m in the twelve months ended December 31st 2015, compared to £3.1m and £23.45m (adjusted after an asset disposal) in the previous year. The business had a cash balance of £9.3m at the year end, up from £6.6m.

The year saw the Group renew its focus on the manufacture and international distribution of higher margin speciality and non-antibiotic feed additive products, following the divestment of the Vitrition organic feed manufacturing division to Devenish Nutrition in March 2015. It invested £0.3m in a new production line and also implemented a new global enterprise resource planning system which is being rolled out to overseas subsidiaries. It continues to invest in R&D, with a promising combination of organic acids and enzymes to improve animal performance in the pipeline.

The UK division improved gross profitability, with particularly encouraging sales of the Genex additive to remove zinc oxide from pig rations and the Ultrabond mycotoxin binder.

Internationally, gross profit in the Americas region was up by 31%, with higher sales in Argentina, Chile, Costa Rica, the Dominican Republic and Mexico, while the period saw the first sales from a new subsidiary business in Brazil. In the US, the initial sales focus has been the Orego-Stim animal health supplement and feed acidifiers including the pHorce product for pigs and poultry. In the last six months, the business has also introduced the Ultrabond mycotoxin product to the US dairy and ruminant feed sector.

The Asia Pacific region returned sales growth of 19%, with 43% volume growth in the Philippines; double digit growth in Bangladesh and strong sales in Thailand, led by the pellet binding product Mastercube.  The Group’s Chinese subsidiary saw 25% growth in local currency terms, despite the volatile Chinese pork market in the early months of the year. Anpario is targeting the feed mill and poultry sectors in China.

The Group has set up a sales office in Kuala Lumpur to manage a number of subsidiaries in key Asian countries and has appointed a commercial director for the Asia Pacific region to oversee the recruitment of senior commercial leaders with key customer relationships and end market knowledge in these markets.

The company says the Europe and Middle East markets remained difficult for a number of reasons including the Russian import ban that affected sales in that country and some of its neighbours, and political tensions in parts of the Middle East and Africa. Continued weakness in European markets led to Anpario exiting some lower margin areas, but it is confident that the lifting of sanctions in Iran could offer opportunities there.

 During the year, the Group was awarded The Queen's Award for Enterprise for outstanding achievement in international trade.

Looking forward, the Group says its strategy is to grow the business organically in its key market areas and to develop local commercial teams closer to our customers which will help increase our business with larger end users. Richard Edwards is now Group chief executive following the resignation of David Bullen.

 “Anpario has delivered a strong profit performance during the year and is now focused on its higher added value feed additive products,” states Group chairman Richard Rose. “Our strategy is to grow the business organically in its key market areas and to develop local commercial teams closer to our customers which will help increase our business with the larger end users. The strong balance sheet continues to provide a sound platform from which to implement our strategy. We look forward with confidence as we continue to build the business for the benefit of all its stakeholders."

Posted on March 10, 2016 and filed under Company News, Feed, Top Story.