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.

• Adjusted EBITDA rose 41% to £2.7m, and profit before tax increased 53% to £2.1m compared to H1 2023.

• Diluted adjusted EPS surged 84% to 10.39p, reflecting higher profitability and a reduced share count after a £9m tender offer.

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

• Business remains resilient with strong balance sheet, cash generation, and a diversified global presence.

Financial highlights

• Gross profit up 20% to £8.1m, with gross margin recovering to 47.5% from 43.9% in H1 2023.

• Adjusted EBITDA margin improved to 15.8% (up from 12.5% YoY).

• Cash balance at period end was £13.5m, with strong operating cash flow and lower CAPEX spend.

• Net assets increased to £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, leveraging operational gearing and potential acquisitions.

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

• Visibility to year-end is limited due to short order lead times and logistics volatility.

• Drive to reduce antibiotic use expected to benefit product growth.