The NWF Group’s Feeds division, trading as NWF Agriculture, has reported increased profitability and revenues at the first half stage of its financial year.
The Wardle, Cheshire-based feed manufacturer made an operating profit of 0.8 million on revenues of £97.6m in the six months to 30th November 2024, compared to £0.4m and £88.6m in the first half of the previous year. At Group level, NWF – which includes Fuels and Food distribution divisions – returned an operating profit of £5m on revenues of £458.2 in the period (£4m and £476.4m in H1 2023).
The 10.2% increase in Feeds revenues reflects higher volumes produced, offsetting lower commodity and product selling prices in the period, says the company. The business continued to manage margins and its cost base effectively.
Feed volumes grew 9.3% to 246,000 tonnes over the six months, from the 225,000 tonnes made in H1 2023. NWF notes this outperforms the national ruminant feed market, which DEFRA data indicates rose by 4.2% in the same period. Commodity prices were stable, with no supply concerns, in contrast to the preceding coupe of very volatile years.
The average milk price increased by 14.0% over the prior first half, ending the period at 46.6p per litre (38.2ppl in November 2023). Milk production was 1.1% higher for the period year-on-year. “The improving milk price has encouraged our farmers to maintain feed usage to optimise herd performance and increase production,” says the company.
NWF notes that its Feeds operational platform, with key mills close to its customers in the northern, central and southern regions, continues to provide an effective base for future development. The latest period saw the business investment has been made in development of a complementary moist feed product line, to extending the company’s product range.
“The Group has delivered a positive first half and we are trading in line with our expectations for the year as a whole,” notes NWF Group chief executive Chris Belsham. “We are pleased with the improved performance in both Fuels and Feeds which has offset the short-term weaker performance in Food as we continued the stock build in the Lymedale warehouse.
“We have continued to progress our key performance initiatives, aimed at enhancing our commercial approach and operational efficiency across the Group. “Supported by our strong financial position, our outlook is unchanged, and we remain confident in NWF’s growth potential and prospects.”