Natural feed additive manufacturer Anpario made a 24.5% increases in profitability and 39% in sales from the first half of its financial year. It is confident of future growth in line with pressure to reduce the use of antibiotics in livestock production around the world.
The Nottinghamshire-based business has reported a pre-tax profit of £1.88 million on revenues of £14.8m in the six months ended June 30th 2017, compared to £1.51m and £10.7m from H1 2016. Cash balance rose to £12.6m at the period end from £11.1m a year earlier.
The business reports encouraging growth in worldwide sales of its main gut health (eubiotic) and mycotoxin binder product groups with contributions from the Orego-Stim, Salkil, Salgard, Ultrabond and Prefect brands.
Anpario’s UK and Ireland operations, which account for some 11% of its overall revenues, saw 15% growth in the latest half year. The company attributes this to the recovery in milk prices which helped raise demand for the Ultrabond and Optomega products to improve fertility in dairy cows. This sector had depressed domestic revenues in the previous full year. The business is also working in partnership with the RSB Poultry Services consultancy to help UK egg producers maximise the profitability of their layer flocks.
In January, the company brought all its legacy brands under a single global Anpario brand to raise its international profile, a move reinforced by the creation of regional commercial teams in the main markets. It says this strategy is starting to deliver, with sales increases of 58% in Asia, 56% in the Americas and 46% from the Middle East contributing £3.13m in organic growth. The business is also growing its presence in Australasia through the acquisition of the Cobbett distributorship for £500,000 in February.
The company has invested in a central technical support team to manage new product development and help its customers adapt to regulatory pressures to replace livestock antibiotic growth promoters and similar products in some areas of the world, or the phase-out of zinc oxide in pig feeds in the EU. It sees these as opportunities for its organic acid-based eubiotic products to promote the development of livestock and poultry gut microbiota, especially in the US dairy and poultry sectors.
“We are delighted by the first half performance driven by the implementation of our strategy to build strong commercial relationships with end users,” states Anpario chairman Peter Lawrence. “The second half of the year has started well. Our strong balance sheet and positive cash generation give Anpario a sound platform from which to make selective earnings enhancing acquisitions and to further invest in recruitment and infrastructure to accelerate the profitable growth of the business.”