Anpario (ANP) H1 2024 earnings summary

Executive summary

• Achieved record first-half revenue of £17.0m, up 11% year-over-year, driven by strong sales in Asia, Middle East & Africa, and Europe, offsetting declines in the US and Australasia.

• Gross profit rose 20% to £8.1m, with gross margin improving to 47.5% from 43.9% due to higher volumes and production efficiencies.

• Adjusted EBITDA increased 41% to £2.7m, and profit before tax rose 53% to £2.1m.

• Diluted adjusted EPS surged 84% to 10.39p, reflecting both profit growth and a reduced share count after a £9m tender offer in 2023.

• Interim dividend increased by 2% to 3.25p per share, supported by improved profits.

Financial highlights

• Revenue: £17.0m (+11% YoY); Gross profit: £8.1m (+20% YoY); Gross margin: 47.5% (+3.6pp YoY).

• Adjusted EBITDA: £2.7m (+41% YoY); Profit before tax: £2.1m (+53% YoY).

• Diluted adjusted EPS: 10.39p (+84% YoY); Cash and equivalents: £13.5m (+85% YoY).

• Net assets: £35.4m, up £1.8m from FY 2023, reflecting share buybacks.

• Administrative expenses rose 11% due to inflation and increased costs, partially offset by restructuring savings.

Outlook and guidance

• Strong start to H2 with accelerating sales and volume growth; profitability expected to improve further.

• Management targets high single-digit annual sales growth, supported by operational gearing and acquisitions.

• Focus on expanding into ruminant, aquaculture, and pet segments to diversify revenue.

• Management does not publish formal revenue or margin guidance but expects continued sales volume recovery and margin protection into 2025.

• Visibility to year-end is limited due to order timing and logistics, with sales cutoffs potentially impacting reported results.