Feed additive manufacturer Anpario has reported a 19% higher profit on unchanged revenues from its latest half year’s trading.
The Nottinghamshire-based company made a pre-tax profit of £2.24 million on revenues of £14.77m in the six months to June 30th 2018, compared to £1.86m and £14.80m in the same period of the previous year. It had a cash balance of £12.6m on June 30th, down £1m from the £13.6m at the end of December 2017. The business is concentrating on restructuring its sales and distribution channels in all its markets, to increase direct sales, while also investing in regional commercial teams and product development.
Anpario’s UK and European operations saw sales growth of 14% in the period, helped by the recovery in milk prices which helped strengthen demand for its Ultrabond and Optomega Plus supplements. The Orego-Stim monogastric animal health product against coccidiosis also performed well.
US revenues grew by 8% based on pig and poultry product sales, with an 84% increase in Australia. The company’s business in China saw a 7% increase in sales, particularly for the Meriden-Stim product and toxin binders, despite a significant drop in pig prices there. The period also saw an Appeal Court ruling that Anpario can use the Orego-Stim trademark in China – currently marketed as Meriden-Stim in that country.
Asian sales declined by £500,000, largely in line with the termination of non-core and low margin business in the Philippines, although the Malaysian and South Korean markets performed strongly.
Latin America experienced a disappointing first half, with a poor economic situation and weak currencies affecting business in Brazil, Mexico and Argentina. Middle East sales were 2% lower.
Looking forward, Anpario is confident its business development strategy will improve sales and distribution. It believes increasing demand for antibiotic-free meat through vaccines and natural feed additives to reduce drug use will benefit its business, with Orego-Stim proven in the control of coccidial disease and promising research as a salmonella treatment.
“Our business development strategy will progressively improve sales and distribution, while control of costs will ensure that they do not move ahead of the growth we achieve,” states Anpario chairman Peter Lawrence. “Our strong balance sheet and consistent cash generation provide Anpario with a sound platform from which to make selective earnings enhancing acquisitions and to further invest in new product development for the future.”